Call Now For a Free Consultation:
(614) 502-6165

Peregrine Financial Schemer Russell Wasendorf Accused of Copycat Fraud

Alleged Peregrine Investment Scheme Good Example of Copycat Fraud

If he did the things he is accused of doing, Russell Wasendorf, Sr. is a perfect example of a copycat fraudster. Based on the allegations against him, Wasendorf built his alleged investment scheme straight out of the playbooks of other infamous fraudsters. No wonder “he said it was ‘relatively simple’ to fool regulators.” At least, that’s the argument writer Joelle Scott made in a July 24 post on PEHub.com.

Earlier this month, Wasendorf and his company, Peregrine Financial Group, Inc., were charged with fraud, misappropriation of customer funds, violation of customer fund segregation laws, and making false statements by the U.S. Commodity Futures Trading Commission. In particular, the CFTC’s Complaint alleged that Wasendorft, Sr. and Peregrine falsely represented in July 2012 that the firm held $220 million worth of customer funds – 43 times more than the $5.1 million it actually held. Several days later, after an attempted suicide, Wasendorf was arrested and charged by federal authorities.

According to the FBI’s investigation and Wasendorf’s suicide note, he – like convicted Ponzi schemer Bernie Madoff – stole millions from customers over multiple decades and used the money to fuel his lavish lifestyle. Also like Madoff, Wasendorf allegedly used his position as a member of a regulatory advisory board (the National Futures Association advisory board) to help elevate him and his firm above regulatory scrutiny. And, like Madoff, Wasendorf claims to have acted alone.

Bernie Madoff isn’t the only infamous fraudster Wasendorf’s alleged scheme brings to mind, however. To learn whom else the alleged con artist may have aped, read Scott’s full post here.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation

Columbus Office

614-224-6000
305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

310-905-8688
2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

216-600-1355
6140 Parkland Blvd.,
Suite 330
Mayfield Heights, OH 44124
Bloomfield Hills Office

248-817-8214
41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
Follow Us
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram