ARTICLE

Cedar Falls brokerage founder can't profit from scandal, judge says

Any proceeds from publications must be assigned to government

Russell Wasendorf Sr., owner of Peregrine Financial Group Inc., cuts the ribbon to the company's new headquarters building during the opening in Cedar Falls in September 2009. (RICK TIBBOTT/Courier Staff Photographer)
Russell Wasendorf Sr., owner of Peregrine Financial Group Inc., cuts the ribbon to the company's new headquarters building during the opening in Cedar Falls in September 2009. (RICK TIBBOTT/Courier Staff Photographer)

If he ever writes a book about his stunning 20-year fraud scheme, Peregrine Financial Group CEO Russ Wasendorf Sr. must give the profits to the federal government that he duped for so long.

Federal prosecutors on Thursday made public their 17-page plea agreement with Wasendorf that was described during a court hearing Tuesday.

It shows Wasendorf acknowledged that he stole more than $100 million in customer funds from his brokerage dating back to the early 1990s, and covered his tracks by submitting phony documents to government regulators and auditors.

The plea deal says that Wasendorf must assign any profits he makes "in connection with any publication or dissemination of information relating to illegal conduct" to the U.S. government.

Wasendorf also agreed to give up all his assets to reimburse victims.

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