CFTC Sues Bank That Held PFG Funds

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Published Date : June 05, 2013

The CFTC today sued US Bank NA, a bank that held customer funds of Peregrine Financial Group, Inc, for unlawfully using and holding customer segregated funds.

According to the CFTC, Russell Wassendorf, the owner of PFG misappropriated more than $215 Million of customer funds from PFG over two decades. It claims, that US Bank knowingly facilitated at least some of this misappropriation when it permitted Wassendorf to transfer funds out of the PFG customer account to pay for his private jet, restaurant and divorce settlement, among other things, thereby treating the PFG customer account as a personal commercial checking account. US Bank also is alleged to have acted unlawfully when it accepted PFG's customer account as security on personal loans to Wassendorf, his wife and his construction company.

The CFTC seeks an injunction against US Bank as well as restitution, disgorgement and civil monetary payments.

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The information contained in this article is not legal advice. For legal advice, please consult with your attorney. The information in this article is derived from sources believed to be reliable as of June 5, 2013, but no representation or warranty is made regarding the accuracy of any statement. To ensure compliance with requirements imposed by U.S. Treasury Regulations, Gary DeWaal and Associates LLC informs you that any U.S. tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Gary DeWaal and Associates may represent one or more entities mentioned in this article.

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