UPDATED: Russ Wasendorf Sr.'s assets sold to highest bidder - KWWL - Eastern Iowa Breaking News, Weather, Closings

UPDATED: Russ Wasendorf Sr.'s assets sold to highest bidder

Posted:
CEDAR FALLS (KWWL) -

Going, going, gone!  More than a thousand assets once owned by Peregrine Financial CEO Russ Wasendorf, Sr. hit the auction block Wednesday. 

Proceeds from the sale will benefit those impacted by the Peregrine scandal.  That scandal was exposed back in July after federal investigators revealed $200 million in missing customer funds. 

Piece by piece--every bit of the Peregrine Financial empire was sold during a combination live and online auction Wednesday.  A thousand people had bidding numbers to be part of the action.

High-end kitchen and exercise equipment, office chairs, printers, even a classic Ford Thunderbird are just some of the items going to the highest bidder.  Nearly everyone attending the auction had their sights set on something specific for their own home or business.

"Absolutely the eagle downstairs!" said Larry Sweeting, a Cedar Falls buyer.

"We need some furniture," said Mohammed Ahmed, Chicago businessman.

"They purchased some vehicles of ours and we're looking to retain those vehicles back to our dealership.  We know their maintenance and care, so we want to offer them again to current clients and customers," said Bill Stoler, with Dan Deery Auto in Cedar Falls.

Great American Group was assigned to conduct the sale.  A business liquidation is not unique for the company, but it doesn't make handling all of Russ Wasendorf Sr. and Peregrine's assets any easier.

"We're just here in the service business trying to sell and recoup.  We take our job very, very seriously.  But certainly we feel sentimental towards the employees and what have you.  These things happen out of their control obviously," said Mark Weitz, Great American Group.

Some buyers, like Mohammed Ahmed of Chicago, weren't familiar with PFG's collapse until now.

"We started googling it to see what it was and figured out what the extent of what happened at this company was and were pretty shocked," Ahmed said.

For others, it struck close to home.

"It's a tragedy, very tough situation," Sweeting said.

Many buyers are just glad that these purchases will be helping repay customers some of their lost investment money.

"I think it's a shame there's so many people on the line, on the cuff, for their cash.  I'm glad they're going to get a part of their money back.  I just wish they could get it all back," Stoler said.

After the auction is over, all the money collected will be turned over to the trustees, being funneled through a court-appointed receiver in Chicago.  It's expected to take only a matter of weeks to start getting that money returned to customers who lost it in the Peregrine collapse.

Great American Group will not have a final tally on exactly how much money was collected through Wednesday's auction for a few days.

 

  • NEWSNEWSMore>>

  • news alert

    UPDATE: Waterloo suspects arrested after man's body found

    UPDATE: Waterloo suspects arrested after man's body found

    Tuesday, September 16 2014 11:37 AM EDT2014-09-16 15:37:40 GMT
    Anthony Tronca, 43, of Waterloo and Jessica Tronca, 29Anthony Tronca, 43, of Waterloo and Jessica Tronca, 29
    Two suspects wanted for questioning in the killing of a Waterloo man were arrested.More >>
    Two suspects wanted for questioning in the killing of a Waterloo man were arrested.More >>
  • UN: Nearly $1 billion needed now to stop Ebola

    UN: Nearly $1 billion needed now to stop Ebola

    Tuesday, September 16 2014 9:36 AM EDT2014-09-16 13:36:56 GMT
    President Obama is expected to announce later Tuesday that the United States will be sending 3,000 American troops to help provide aid.More >>
    President Obama is expected to announce later Tuesday that the United States will be sending 3,000 American troops to help provide aid.More >>
  • House GOP moves ahead on Syrian rebel training

    House GOP moves ahead on Syrian rebel training

    Monday, September 15 2014 10:31 PM EDT2014-09-16 02:31:32 GMT
    This week offers Congress its best chance to get answers about President Barack Obama's new Mideast counterterror strategy.More >>
    Lawmakers raced Monday to authorize an expanded mission to arm and train moderate Syrian rebels before heading back to the campaign trail, with House Republicans preparing legislation backing a central plank of President...More >>
Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and KWWL. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service and Mobile Privacy Policy & Terms of Service.

Persons with disabilities who need assistance with issues relating to the content of this station's public inspection file should contact Administrative Assistant Sandy Youngblut at 319-291-1259. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, at 888-835-5322 (TTY) or at fccinfo@fcc.gov.