Events leading up to and involving the investigation at Peregrine Financial Group and Russell Wasendorf, Sr.
Created by KWWL on Jul 13, 2012
Last updated: 01/31/13 at 04:37 PM
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Russ Wasendorf, Sr., will effectively spend the rest of his life in prison. Thursday a federal judge gave the 64-year-old Wasendorf a 50 year sentence.
Wasendorf stole more than $215 million in customer funds from his commodity futures business, the now-bankrupt Peregrine Financial Group, Inc. (PFG), headquartered in Cedar Falls.
http://www.kwwl.com/story/20890873/2013/01/31/wasendorf-sentenced-to-50-years-in-federal-prison
Former CEO of Peregrine Financial Group Russ Wasendorf Sr. is expected to be sentenced to prison Thursday for embezzling up to $215 million in customer funds.
The judge in his trial will also be faced with the unusual decision of how to divvy up the company's remaining assets.
http://www.kwwl.com/story/20878520/2013/01/31/wasendorf-in-court-thursday-judge-decides-how-to-divvy-up-the-remaining-assets-of-pfg
The federal court has set a sentencing date for Russ Wasendorf, Sr., who remains in jail on federal fraud charges.
The sentencing hearing will be January 31st, at 9:00 a.m.
http://www.kwwl.com/story/20586134/2013/01/14/court-sets-sentencing-date-for-wasendorf
Court records show the Iowa Department of Revenue has accused Russ Wasendorf Senior and his former wife of underreporting their income and dodging millions in taxes.
http://www.kwwl.com/story/20508825/2013/01/04/russ-wasendorf-sr-accused-of-cheating-on-taxes
Going, going, gone! More than a thousand assets once owned by Peregrine Financial CEO Russ Wasendorf, Sr. hit the auction block Wednesday.
Proceeds from the sale will benefit those impacted by the Peregrine scandal. That scandal was exposed back in July after federal investigators revealed $200 million in missing customer funds.
http://www.kwwl.com/story/20266051/2012/12/05/russ-wasendorf-srs-assets-up-for-auction-wednesday
You could own a slice of what once belonged to Peregrine Financial Group CEO Russ Wasendorf, Senior. Wasendorf awaits sentencing in the Peregrine scandal that left $200 million in customer funds missing.
Assets will be auctioned Wednesday, December 5th, live and online.
http://www.kwwl.com/story/19826345/peregrine-financial-real-estate-assets-up-for-sale
An Iowa investment broker accused of fraud will not be released from jail pending his sentencing.
A federal judge in Cedar Rapids rejected Russell Wasendorf, Senior's bid Tuesday.
http://www.kwwl.com/story/19779456/wasendorf-will-not-be-released-pending-his-sentence
Russ Wasendorf, Jr. sues U.S. Bank and a U.S. Bank employee, claiming fraud and negligent representation.
http://www.kwwl.com/story/19588995/wasendorfs-file-lawsuit-against-us-bank
In 79-pages of court documents, Russ Wasendorf, Jr., and his wife Amber, accuse U.S. Bank of fraud, negligent representation and unilateral mistake. The suit says PFG maintained various accounts at U.S. Bank, but the suit focuses mainly on a PFG Customer Segregated Account at a U.S. Bank branch in Cedar Falls.
http://www.kwwl.com/story/19588995/wasendorfs-file-lawsuit-against-us-bank
Russell Wasendorf, Sr. formally entered a plea agreement, admitting guilt to one charge of mail fraud, one count of embezzlement of customer funds, and two counts of making false statements.
Last month a grand jury indicted the 64-year-old on 31 counts of making false statements.
Under the plea agreement those charges will be dismissed.
http://www.kwwl.com/story/19567017/wasendorf-pleads-guiltynot-released-from-prison
Russell Wasendorf, Sr. pleads guilty to four charges. As part of a plea deal, the other charges will be dismissed.
http://www.kwwl.com/story/19567017/wasendorf-pleads-guiltynot-released-from-prison
In court documents filed on Thursday, a judge has authorized that Russell Wasendorf, Sr. be released from jail until his sentencing.
A plea change hearing has been set for Monday when Wasendorf, Sr. is expected to change his plea to guilty on four charges detailed in a plea agreement.
http://www.kwwl.com/story/19539380/wasendorf-sr-to-be-released
A Chicago-based bankruptcy law firm is combing through all of Wasendorf and Peregrine's assets in preparation for public auction.
Among Wasendorf himself, Peregrine, and its subsidiaries, there are millions of assets going on the auction block. But right now, there's no exact tally on just how many items there are and what their value could be. It's still being compiled.
http://www.kwwl.com/story/19527533/wasendorf-sr-peregrine-assets-headed-for-auction
New documents show the assets of PFGBest are far less than the $500 million to $1 billion originally reported. According to bankruptcy documents PFGBest has around $525 million in liabilities and only $270 million in assets. That leaves about a $255 million shortfall.
http://www.kwwl.com/story/19517672/pfgbest-bankruptcy-documents-show-more-liabilities-than-assets
Prosecutors say Russell Wasendorf, Sr., the CEO of Peregrine Financial Group, signed a plea deal admitting to a $200 million fraud scheme.
As part of the deal, Wasendorf, Sr. will plead guilty to mail fraud, embezzling customer funds and two counts of making false statements to regulators. Prosecutors say Wasendorf could be sentenced to up to 50 years in prison. His attorney says her client has not agreed to that sentence.
http://www.kwwl.com/story/19516556/wasendorf-sr-signs-plea-deal
A Cedar Falls businessman wants to be let out of jail while awaiting trial in federal court.
Russ Wasendorf, Sr. has been in jail since July after being accused by federal prosecutors of stealing more than $100 million.
http://www.kwwl.com/story/19497199/court-records-indicate-wasendorf-wants-out-of-jail
The collapsed Cedar Falls-based brokerage Peregrine Financial Group has approved a $20,000 raise for a company lawyer.
http://www.kwwl.com/story/19467044/pfg-gives-lawyer-a-20000-raise
The new wife of an embattled CEO says she didn't know the man she was marrying.
Court records indicate Nancy Paladino filed for an annulment on Aug. 13 in Clark County, Nevada. That's where she and Peregrine Financial Group CEO Russell Wasendorf, Sr. were married on June 30. It was a surprise move as the couple had an August wedding planned in Iowa.
http://www.kwwl.com/story/19398233/new-bride-of-wasendorf-sr-seeks-annulment
Court records show Nancy Paladino filed for an annulment, claiming she married Russ Wasendorf, Sr. under "false pretenses."
http://www.kwwl.com/story/19398233/new-bride-of-wasendorf-sr-seeks-annulment
Russ Wasendorf, Sr. is indicted on 31 counts of lying to federal regulators between 2010 and 2012.
http://www.kwwl.com/story/19267261/wasendorf-sr-indicted-on-31-counts
Russ Wasendorf, Sr. pleaded not guilty to 31 counts of making false statements to the government on Friday morning.
Wasendorf, Sr. appeared in U.S. Federal Court in Cedar Rapids on Friday morning after being indicted on Monday.
http://www.kwwl.com/story/19267261/wasendorf-sr-indicted-on-31-counts
Over 200 employees lost their jobs after the downfall of PFG Best and myVerona. Tuesday, there may be some relief as one of the first job fairs will be held for those employees.
http://www.kwwl.com/story/19155168/job-fair-available-for-pfg-and-my-verona-employees
Of the 207 people who lost their jobs at Wasendorf properties, 150 of them were maintenance workers, food service employees, and childcare providers. Those workers were the focus of Tuesday's job fair.
http://www.kwwl.com/story/19162090/job-fair-held-for-former-pfg-employees
Embattled Cedar Falls businessman Russ Wasendorf, Sr., has waived his right to a preliminary hearing.
The hearing was scheduled for Friday.
http://www.kwwl.com/story/19122621/wasendorf-waives-right-to-detention-hearing
Russ Wasendorf, Sr. waives his right to a preliminary hearing in U.S. District Court on fraud charges.
http://www.kwwl.com/story/19122621/wasendorf-waives-right-to-detention-hearing
Peregrine Financial Group CEO Russ Wasendorf Sr. had been expected to appear in U.S. District Court in Cedar Rapids on Wednesday afternoon for a detention hearing and a preliminary hearing. But now that hearing has been pushed back a week.
http://www.kwwl.com/story/19054389/wednesday-hearing-for-russ-wasendorf-sr-delayed
Elizabeth Duchene's work as a server at MyVerona came to a sudden end with little warning.
"Tuesday I was supposed to work at 10 am. I was told at 8:30 not to come in," Duchene said.
Duchene hasn't worked since.
http://www.kwwl.com/story/19059163/pfg-my-verona-workers-attend-informational-career-meeting
According to federal court documents, Peregrine Financial Group owner Russ Wasendorf, Sr., left a signed confession and a suicide note for his son, Russ Wasendorf, Jr., before attempting to kill himself outside the company headquarters in Cedar Falls last week.
http://www.kwwl.com/story/19054316/russell-wasendorf-srs-suicide-note-to-his-son
Russ Wasendorf, Sr. was charged with making false statements to the CFTC regarding segregated customer funds.
http://www.kwwl.com/story/19020124/wasendorf-sr-arrested
The New York Times said with "the broad smile and clean-cut looks of a television news anchor, Mr. Wasendorf, 64, is a rock star in Cedar Falls... he regularly flew his private jet for meetings in Chicago" and "his employees jokingly referred to the plane as Air Wasendorf. He flew around the world to attend Lady Gaga concerts."
http://www.kwwl.com/story/19024054/national-media-painting-wasendorf-sr-as-showy-businessman
The State of Iowa says Peregrine Financial Group defaulted on a $ 1.2 million dollar incentives package long before the collapse of the business last week.
http://www.kwwl.com/story/19020124/wasendorf-sr-arrested
Just three days before employees learned they were out of a job, Russ Wasendorf Junior sent an email to company employees saying PFG Best was on track for a more secure future. On the following Monday, his father attempted suicide and federal authorities began an investigation into Peregrine Financial Group.
http://www.kwwl.com/story/19014705/national-media-spotlight-on-pfg-best-fallout
Peregrine Financial Group was feeling financial pressures long before collapse of the company this week.
Several weeks before Tuesday's bankruptcy filing, employees were asked to take a 10 percent pay cut in two installments, June and July. They took the first pay cut last month.
http://www.kwwl.com/story/19015918/peregrine-felt-financial-pressure-asked-employees-to-take-pay-cuts
When Russ Wasendorf Sr. moved Peregrine Financial Group to Cedar Falls, he promised a multi-million dollar impact on the community; and for five years, it did have that impact -- including funding for local athletics and charities, not to mention the money spent every day by the company's highly-skilled employees.
Now, the Greater Cedar Valley Alliance and Chamber is in overdrive, working to prevent that revenue -- and PFG's employees -- from leaving town.
http://www.kwwl.com/story/19005708/pfgs-bankruptcy-will-impact-the-cedar-valley-economy-and-business-community
Although it was a campaign event, both Santorum and Rogers commented on the recent news of the Peregrine Financial Group filing for bankruptcy protection.
http://www.kwwl.com/story/19001120/walt-rogers-and-rick-santorum-talk-about-pfg
A former employee of Peregrine Financial Group has filed a lawsuit against the company, claiming employees were fired without proper notice.
http://www.kwwl.com/story/19005083/former-employee-files-lawsuit-against-peregrine-financial-group
Peregrine Financial Group has filed for Chapter 7 bankruptcy protection.
http://www.kwwl.com/story/18999378/pfg-files-for-chapter-7-bankruptcy-protection
Peregrine Financial Group files for Chapter 7 bankruptcy.
http://www.kwwl.com/story/18999378/pfg-files-for-chapter-7-bankruptcy-protection
My Verona, an upscale Italian restaurant owned by Wasendorf, Sr., closes.
http://www.kwwl.com/story/18984750/cedar-falls-futures-broker-pfgbest-under-investigation
An employee sues PFG, claiming he was not given proper notice before losing his job.
http://www.kwwl.com/story/19005083/former-employee-files-lawsuit-against-peregrine-financial-group
Russ Wasendorf, Sr. attempts to commit suicide. His suicide note launches an FBI investigation and freezing of the company's funds by the NFA.
http://www.kwwl.com/story/18984750/cedar-falls-futures-broker-pfgbest-under-investigation
Peregrine Financial Group filed for Chapter 7 bankruptcy late Tuesday in U.S. Bankruptcy court in Chicago.
It's the latest development, triggered by the attempted suicide of Peregrine Financial Group founder and owner, Russell Wasendorf, Sr.
http://www.kwwl.com/story/18984750/cedar-falls-futures-broker-pfgbest-under-investigation
In a company wide email, planned salary cuts are cancelled and employees are told everything at PFG is OK.
http://www.kwwl.com/story/19015918/peregrine-felt-financial-pressure-asked-employees-to-take-pay-cuts
Despite a scheduled wedding on Aug. 4, Wasendorf, Sr. and his fiance are married in Las Vegas.
http://www.kwwl.com/story/19015918/peregrine-felt-financial-pressure-asked-employees-to-take-pay-cuts
Russ Wasendorf, Sr., gives his son, Russ Wasendorf, Jr., Power of Attorney.
http://www.kwwl.com/story/19015918/peregrine-felt-financial-pressure-asked-employees-to-take-pay-cuts
PFG employees were notified of 10% salary cuts to happen in June and July.
http://www.kwwl.com/story/19015918/peregrine-felt-financial-pressure-asked-employees-to-take-pay-cuts
The National Futures Association fines PFG $700,000 for failure to supervise its brokers.
http://www.nfa.futures.org/news/newsRel.asp?ArticleID=3965
Russ and Connie Wasendorf made the $2 million donation at halftime of Saturday's game against Indiana State. The gift was made through the UNI Foundation.
http://www.kwwl.com/story/11253417/couple-pledges-2m-to-uni
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