U.S. Bank is Defendant in Fraud Suit

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According to the Star Tribune, Peregrine Financial Group Inc. sued U.S. Bank and the company's founder Russell Wasendorf Sr. for mishandling over $200 million in consumer funds.

The National Futures Association announced there was only $5 million depostied at U.S. Bank, and subsequently froze Peregrine's account. Wasendorf attempted to comitt suicide July 9, and admitted in a confession to altering bank statements to conceal the fraud.

Peregrine has filed four complaints since its collapse, but this is the first to list U.S. Bank as a defendant. Wasendorf is in custody, and has been charged with lying to federal regulators.

Wasendorf's son Russell Wasendorf Jr. and other company executives have also been listed as defenants in the complaints.

According to C-Span, Gary Gensler said the financial system did not adequately protect consumers of the Financial Group.

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