Russ Wasendorf Sr. to be questioned by commission in prison - KWWL - Eastern Iowa Breaking News, Weather, Closings

Russ Wasendorf Sr. to be questioned by commission in prison

Posted: Updated:
WATERLOO (AP) -

An Iowa businessman incarcerated for stealing millions from his brokerage's customers will get a visit from one regulatory agency that failed to uncover his scheme for years.

U.S. Magistrate Judge Jon Scoles granted a request Monday by the Commodity Futures Trading Commission to depose Russell Wasendorf Sr. at the federal prison in Terre Haute, Ind.

CFTC lawyers will question the founder of Peregrine Financial Group for their lawsuit contending that U.S. Bank mishandled Peregrine customers' funds while Wasendorf carried out his $215 million fraud over 20 years.

CFTC claims that U.S. Bank unlawfully accepted customer funds as security on loans it made to Wasendorf, and knowingly allowed him to transfer customers' funds to pay for business dealings and personal expenses.

U.S. Bank denies wrongdoing.

Wasendorf is serving a 50-year term.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Powered by Frankly