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CFTC Sues Bank That Held PFG Funds

News Developments    Between Bridges   
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.

For more information, see:
http://www.cftc.gov/PressRoom/PressReleases/pr6601-13
http://www.cftc.gov/ucm/groups/public/@lrenforcementactions/documents/legalpleading/enfusbankcomplaint060513.pdf

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