Federal Commission Eyeing Wasendorf Businesses, Possessions

By Jeff Reinitz, The Waterloo-Cedar Falls Courier

Russ Wasendorf, sr. Monday, April. 4, 2011. (RICK CHASE / Courier Staff Photographer)

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By Aaron Hepker

Story Created: Jul 17, 2012 at 6:19 PM CDT

Story Updated: Jul 17, 2012 at 6:19 PM CDT

EVANSDALE, Iowa - Officials tasked with overseeing and untangling the finances of Peregrine Financial Group in the wake of the company’s bankruptcy are setting their sites on the founder’s other business interests.

The receiver appointed to handle PFG in connection with a Commodity Futures Trading Commission action brought against the company said in less than a week, he has identified more than a dozen entities tied to Russell Wasendorf Sr., as well as two downtown Chicago condos.

Wasendorf Sr. attempted to take his own life outside the PFG offices in Cedar Falls on July 9 and allegedly admitted to siphoning money from the company and deceiving regulators in a signed statement left with suicide notes. He was arrested on federal charges Friday.

“Given the allegations in the case and the admissions made by Wasendorf Sr. in the statement accompanying his suicide note, it is possible assets owned by the Wasendorf entities may have been procured with funds embezzled from PFG,” Michael Eidelman, the receiver in the CFTC case, said in court records filed Monday.

The motion listed a condominiums on North Harbor Drive and North Lake Shore Drive owned by Wasendorf Sr. or one of his companies.

Court records also listed publishing, construction and other companies controlled in whole or part by Wasendorf Sr. as: Avrig 35 Group, CEEIF Trust, My Verona, Rombus, SFO Magazine, Traders Education Exchange Inc., Traders Press Inc., Village Gate Communications, Wasendorf and Associates, Mountain Town, Wasendorf Air, Wasendorf Construction/CEA Customer Segregation, Wasendorf & Sons Co. and W&A Publishing.

The receiver also asked the court to hire some employees with the companies to locate and secure the assets.