100 Million Dollar Bubeleh

Iowa City, IA – CEO Of Troubled Iowa Brokerage Arrested, Charged In $100M Embezzlement

Published on:   Today 03:33 PM

News Source: AP
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FILE - This Monday, April 4, 2011 file photo shows Russ Wasendorf, Sr., CEO of Peregrine Financial Group, Inc. in Cedar Rapids, Iowa. A complaint filed Friday, July 13, 2012 in U.S. District Court in Cedar Rapids says Wasendorf, Sr., 64, made false statements to the U.S. Commodity Futures Trading Commission about the value of customer funds held by his company, Peregrine Financial Group, Inc. A press release from the U.S. Attorney's Office says Wasendorf was arrested Friday by FBI agents and is due in federal court in Cedar Rapids for an initial appearance. (AP Photo/Waterloo Courier, Rick Chase, File)FILE – This Monday, April 4, 2011 file photo shows Russ Wasendorf, Sr., CEO of Peregrine Financial Group, Inc. in Cedar Rapids, Iowa. A complaint filed Friday, July 13, 2012 in U.S. District Court in Cedar Rapids says Wasendorf, Sr., 64, made false statements to the U.S. Commodity Futures Trading Commission about the value of customer funds held by his company, Peregrine Financial Group, Inc. A press release from the U.S. Attorney’s Office says Wasendorf was arrested Friday by FBI agents and is due in federal court in Cedar Rapids for an initial appearance. (AP Photo/Waterloo Courier, Rick Chase, File)

Iowa City, IA – The chief executive officer of an Iowa-based brokerage firm admitted in a suicide note to carrying out an elaborate fraud scheme in which he embezzled more than $100 million from customers over nearly two decades, federal investigators said Friday.

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FBI agents arrested Russell Wasendorf, Sr., 64, of Cedar Falls on Friday. Federal prosecutors unsealed a criminal complaint charging the CEO of Peregrine Financial Group, Inc., with making false statements to regulators and released documents detailing a wide-ranging fraud scheme that apparently fooled colleagues, customers and regulators for years.

Wasendorf had been hospitalized at University of Iowa Hospitals and Clinics after attempting suicide outside the company’s headquarters in Cedar Falls on Monday by hooking up a tube to his car’s tailpipe.

His company filed for bankruptcy on Tuesday, the same day federal regulators filed civil fraud charges alleging the firm falsely claimed a bank account contained more than $220 million when it actually had about $6 million. The money in that account belonged to customers, and was supposed to be kept separate from Peregrine’s own money.

Officials from another industry regulator, the Financial Industry Regulatory Authority, were on site at Peregrine’s Cedar Falls offices to examine the firm Friday. The agency regulates broker-dealers that buy and sell stocks. The losses apparently are centered in the part of Peregrine that sold commodity options and futures.

An affidavit by FBI agent William Langdon, made public with the criminal complaint, says authorities found Wasendorf unresponsive Monday in his vehicle, along with a suicide note and a signed statement in which he detailed his fraud over the past 20 years.

“Through a scheme of using false bank statements I have been able to embezzle millions of dollars from customer accounts at Peregrine Financial Group, Inc. The forgeries started nearly twenty years ago and have gone undetected until now. I was able to conceal my crime of forgery by being the sole individual with access to the US Bank accounts held by PFG,” he wrote in the note, according to court documents.

Wasendorf said that he altered and falsified bank statements and made forgeries of official letters and correspondence from banks, the affidavit says. He said he used computer software, scanners and printers to “make very convincing forgeries of nearly every document that came from the bank.”

“I could create forgeries very quickly so no one suspected that my forgeries were not the real thing that had just arrived in the mail,” he wrote.

He said he was able to use his authority at the firm as its founder and sole shareholder to conceal the fraud. He said he ordered bank statements be delivered directly to him unopened, that he was the only person with access to the firm’s online bank account, and he told the bank that he was the only company official they should call, according to the court documents.

Wasendorf said he was also able to fool regulators checking how much money his company had by opening a post office box in Cedar Falls in the name of U.S. Bank, which he put on the counterfeit bank statements he created. Auditors mailed confirmation forms to the false address, and he sent phony documents back showing the accounts contained “the amount I needed to show.”

“When online Banking became prevalent, I learned how to falsify online bank statements and the regulators accepted them without question,” he added.

Wasendorf confirmed that he wrote the statement and that it was true during an interview with investigators Monday at the hospital in Iowa City, Langdon wrote, estimating “the amount of loss due to his fraud exceeded $100 million.”

FBI spokeswoman Sandy Breault said she could not comment on where Wasendorf was arrested. Assistant U.S. Attorney Peter Deegan said Wasendorf would appear in person in federal court in Cedar Rapids on Friday afternoon for an initial appearance, but declined further comment.

The criminal complaint alleges that Wasendorf made false statements to the U.S. Commodity Futures Trading Commission about the value of customer funds held by his company from 2010 until recently.

Deegan said he did not know whether Wasendorf has an attorney, and court records did not yet list one as of Friday afternoon. A phone message left at company headquarters wasn’t returned.

Wasendorf’s son, Russ Wasendorf, Jr., the company’s president and chief operating officer, also received a copy of the statement from his father admitting to the fraud at his office on Monday, the FBI affidavit said. He told authorities he checked his father’s claims by obtaining a bank statement that showed a balance of $6.3 million — an account that regulators were told had $221.7 million as of December.

~In other news

Jack Abramoff begins a new show about politics on Clear Channel

Coming soon- Jonathan Pollard and his views on National Security.

You will wake up whether you want to or not and you will do what has had to be done over 100 times before- yes you will and you know it. Might as well just accept it or accept the alternative. Its up to you, but I am not going to wait around for you forever.

The day a Jew kills himself for embezzling 100 million hell will freeze over.

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2 Responses to 100 Million Dollar Bubeleh

  1. melgibstein says:


    This is David Dukes video on the Zimmerman ordeal. Let me make something clear, David Duke took roughly 3 weeks to discover this guy wasnt white. He trusted the very “Zio Media” which he claims he made up the phrase himself, lied about him being white when his picture was all over the news. Now he is saying Zimmerman is a Black man himself (or his Grandfather is Black). Mr Duke has not published the pictures of Jorge’s mother or father who appear to me, look like Jews.

    He also disregards the fact that Zimmerman could be a Jew himself of Hispanic descent. How do I know he is disregarding this? Because I told him myself folks. He’s had his phone cut off ever since. he also keeps bringing Obama into the ordeal and I say, couldnt he also have had a Jewish mother? After all his wifes first cousin is a Black Jewish Rabbi.

    The only time Duke ever even claimed that Zimmerman could be a Jew is when I told him and then all his detective work seized. According to DD a Latino cannot be a jew nor can a Black person be a Jew. This guy claims to be into some kind of a white racial identity group with his professor friends? These guys are clowns folks. I know you hate to hear it, but they get in places to lead, lead you right over a cliff. These guys like DD, Kevin MacDonald, Jared Taylor want to make us believe Jews are whites and cant distinguish the difference. Oh yes we can!

    What is the Duke covering up? Anyone who knows the truth of this entire saga that has come to the forefront of our TV’s and newspapers knows this is a Jew cover-up from lox to nuts.

    • melgibstein says:

      David Dukes reply to one of his commenters:
      Some suggest that Zimmerman is part Jewish because of his name, Actually it is a quite common German name. Some would assume Alfred Rosenberg would be Jewish although he was chief Theoretician of the NS Party under Hitler. It appears Zimmerman has German father who is catholic and no evidence is available showing Jewish descent. His mother is Peruvian. Zimmerman is of mixed race just as Obama is of mixed race. It is possible he has some Jewish ancestry, but I’ve seen no credible evidence.

      I know nuthink! So thats it folks- its settled in Dukes head, Zimmerman is the son of a Nazi. Do we actually have people on this earth that stupid?

      This is a guy who said Zimmerman was a white man for 3 weeks straight after this murder occurred.
      David Duke- you are a ZIO SHILL! We know how you want to make us believe you invented the word ZIO, but the truth is you are always 10 years behind everyone else.

      The racial expert and his dufus partner ZIO Professor think names make someone German or Peruvian. Ladies and gentlemen, Germans can be Jews and whats more, Peruvians can be Jews, both of which countries have had Jewish leaders. This is just pure Jewish CRAP.

      Oddly, my comment didnt make the great freedom of speech doctors comment board. Because he is full of Jewish dog doo.

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