The University of Northern Iowa is going to bankruptcy court to try to get money back from the now defunct Cedar Falls-based investment fund Peregrine Financial group. The firm’s CEO Russell Wasendorf, Sr. is serving a 50-year prison term for defrauding investors of more than 200 million dollars.
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.
Iowa Public Radio's Pat Blank reports Russell Wasendorf will spend the rest of his life in prison.
A federal judge has sentenced 64- year- old Russell Wasendorf, Sr. to 50 years in prison. Last July, following an attempted suicide, Wasendorf admitted to stealing more than 215 million dollars in customer funds from his Cedar Falls brokerage firm Peregrine Financial Group.
In a plea agreement in September, he pleaded guilty to charges of mail fraud, embezzlement and making false statements. 50 years is the maximum punishment for those offenses. There is no parole in the federal court system. He was sentenced by Chief Judge Linda Reade.
Economic development officials have begun to assess the fallout from the abrupt closure of the Cedar Falls-based international brokerage firm, Peregrine Financial Group doing business as PFGBest. The company is being investigated by both governmental and regulatory officials for fraud and misuse of customer money. 220 million dollars is reportedly missing, Company founder, 64 year old Russell Wasendorf Sr. attempted suicide on Monday. CEO of the Greater Cedar Valley Alliance and Chamber, Steve Dust says they're reacting to what they know and discounting what they can't verify.