The CEO facing charges in a 20-year fraud scheme has filed a lawsuit of his own, according to www.kentucky.com.
64-year-old Russ Wasendorf, Sr., who pleaded guilty to a string of charges in relation to a $200 million fraud scandal. He has filed a lawsuit in response, though, claiming that US Bank helped him with his fraud.
Wasendorf's son, Peregrine President Russ Wasendorf, Jr., filed the lawsuit. It was an attempt to get out of the millions of dollars in loan money that built the Peregrine building. He claimed in the suit that the debts should be void because US Bank claimed that the company's finances were in good condition.
According to the lawsuit filed, US Bank failed to keep Peregrine's customer funds in a separate account and that it was aware the that Wasendorf, Sr. was taking customer funds.
Another claim in the lawsuit stated that Hope Timmerman, a US Bank liaison to PFG, told auditors in May 2011 that there was only $7.2 million in the customer account, then three days later that there was $221 million in it. Timmerman was not able to be contacted regarding the claim.
US Bank Senior Vice President Tom Joyce denied these allegations. He stated that no bank employees committed any such act, and the lawsuit is only an attempt to shift the attention from the former CEO and deflect the blame to someone else. He stated that US Bank will defend themselves against the claim.
In order to do this, US Bank will have to explain why it allowed customer funds to be deposited into Peregrine's corporate account.
Wasendorf pleaded guilty to charges of mail fraud, lying to regulators and embezzling customer funds. Wasendorf has admitted that he started withdrawing customer funds in the 1990s for his own use and created false reports for regulators, fooling US Bank as well as the National Funds Association.
Wasendorf, Jr. has denied any knowledge of the fraud scheme and is not believed to be a target of the investigation.
64-year-old Russ Wasendorf, Sr., who pleaded guilty to a string of charges in relation to a $200 million fraud scandal. He has filed a lawsuit in response, though, claiming that US Bank helped him with his fraud.
Wasendorf's son, Peregrine President Russ Wasendorf, Jr., filed the lawsuit. It was an attempt to get out of the millions of dollars in loan money that built the Peregrine building. He claimed in the suit that the debts should be void because US Bank claimed that the company's finances were in good condition.
According to the lawsuit filed, US Bank failed to keep Peregrine's customer funds in a separate account and that it was aware the that Wasendorf, Sr. was taking customer funds.
Another claim in the lawsuit stated that Hope Timmerman, a US Bank liaison to PFG, told auditors in May 2011 that there was only $7.2 million in the customer account, then three days later that there was $221 million in it. Timmerman was not able to be contacted regarding the claim.
US Bank Senior Vice President Tom Joyce denied these allegations. He stated that no bank employees committed any such act, and the lawsuit is only an attempt to shift the attention from the former CEO and deflect the blame to someone else. He stated that US Bank will defend themselves against the claim.
In order to do this, US Bank will have to explain why it allowed customer funds to be deposited into Peregrine's corporate account.
Wasendorf pleaded guilty to charges of mail fraud, lying to regulators and embezzling customer funds. Wasendorf has admitted that he started withdrawing customer funds in the 1990s for his own use and created false reports for regulators, fooling US Bank as well as the National Funds Association.
Wasendorf, Jr. has denied any knowledge of the fraud scheme and is not believed to be a target of the investigation.
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