More than a year after Peregrine Financial Group went belly up following a Ponzi scheme; the U.S. Commodity Futures Trading Commission is suing U.S. Bank. They claim the bank knowingly helped former PFG CEO Russell Wasendorf Sr. defraud more than 24,000 customers.
The lawsuit alleges that Wasendorf and U.S. Bank held customers funds in an account that was treated like a commercial checking account. The money in the account allegedly went to pay for Wasendorf’s private jet, a restaurant and his divorce settlement.
Wasendorf is currently serving a 50-year sentence for defrauding Peregrine customers out of roughly $215 million.