Posts Tagged ‘Peregrine’
Last time I mentioned Peregrine Financial Group here, the news was that the CEO has signed a plea deal.
Today he was sentenced to 50 years in prison – Chicago Tribune – Former Peregrine CEO Wasendorf gets 50 years in prison
The Wall Street Journal reports that the CEO of Peregrine Financial Group has signed a plea bargain deal with the feds. The article, Peregrine CEO Signs Plea Deal says:
Under the agreement, Russell Wasendorf Sr. would plead guilty to charges of embezzlement and mail fraud alongside two counts of lying to government regulators, assistant U.S. attorneys said in a Cedar Rapids, Iowa, court Tuesday.
The Wall Street Journal has a copy of the criminal complaint filed against the owner of Peregrine Financial Group. You can find it here.
I’m going to take a shot at developing a fraud case study of the Peregrine fiasco and try to do so in real-time.
Here is what I know so far:
- Post 1 – Regulators apparently deceived in PFGBest fraud
- Post 2 – Peregrine CEO charged – allegation is he ran fraud for 20 years.
I will pull in some of the info provided publicly by the FBI. This provides more depth of interest to CPAs that is currently visible in the media.
The Wall Street Journal article Peregrine CEO Arrested says that the suicide note left by Mr. Wasendorf claims to have been running a fraud for 20 years.
The article reports Mr. Wasendorf was arrested and arranged on Friday, July 13.
In just one paragraph, here is a very rough outline of the length and depth of the alleged fraud:
Things are falling apart faster on the PFGBest fiasco than I can read the news articles. So I’ll take this on just one bite at a time.
The Wall Street Journal reports in their article, Red Flags at Failed Broker, that the regulators of Peregrine Financial Group, Inc. were successfully mislead by the company. Far more details will follow in the near future, I’m sure. Perhaps every few hours.