Wasendorf's Son Cancels Lawsuit Against U.S. Bank
WATERLOO, Iowa --- The son of Peregrine Financial Group founder Russell Wasendorf Sr. has dropped his lawsuit against the bank that held the commodity futures firm's account.
Russell Wasendorf Jr. and his wife had filed a suit against U.S. Bank and a bank employee in September claiming the bank didn't tell them about his father's finances when they signed agreements to back construction for PFG's headquarters in Cedar Falls.
In October, the son's attorneys, Scott Buchanan of Algona and Nicholas Iavarone of Chicago filed to dismiss the lawsuit in October.
No explanation was offered, and Buchanan and Iavarone weren't available for comment.
The suit was dismissed "without prejudice," which means Wasendorf Jr. has the option of reviving it at a later date.
Wasendorf Sr., 64, was arrested in July after he allegedly attempted to kill himself outside that PFG offices, and futures regulators discovered the firm's customer segregated account was short some $200 million. Wasendorf Sr. pleaded guilty to federal fraud and embezzlement charges and is awaiting sentencing.
PFG has since filed for bankruptcy, and a conservator has taken over senior's assets.
Wasendorf Jr. was PFG's chief operating officer, but the father owned the company.
The son and daughter-in-law said they relied on the bank's representations concerning the father's financial situation when they entered the agreements to finance the headquarters construction in 2008. In the lawsuit, they said bank officials told them the loan was based on senior's assets, which the bank claimed were more than sufficient to cover the loan.
The son and daughter-in-law had asked the court to rescind the agreements.