The federal commission that regulates the U.S. futures trading industry has permanently barred the accountant who audited Russell Wasendorf’s Peregrine Financial Group in Cedar Falls and did not discover his fraud scheme. Iowa Public Radio’s Durrie Bouscaren reports.
An order for the civil case brought by the U.S. Commodity Futures Trading Commission reads Wasendorf was able to perpetuate and conceal the scheme because Peregrine’s accounts were not subject to proper audits.
The accountant, Jeannie Veraja-Snelling, worked out of her home in a Chicago suburb.
According to the court order, when Veraja-Snelling attempted to confirm bank account balances, Peregrine employees directed her to send requests to a P.O. Box secretly controlled by Wasendorf. Wasendorf then forged the signature of a bank employee to falsely confirm the accounts.
The Commission has charged Veraja-Snelling with failing to properly audit Peregrine’s financial statements according to generally accepted auditing standards, and has barred her from practice.
In the settlement, Veraja-Snelling waived a hearing and judicial review. The settlement also bars her from making a statement denying the conclusions of the legal order.