Mechanics' liens filed against Wasendorf properties

Construction companies have placed mechanics' liens on the home of Peregrine Financial Group founder Russell Wasendorf Sr.'s home and two properties connected with him, claiming they weren't paid for work.

Wasendorf Sr., 64, allegedly attempted to take his own life July 9, an event that triggered regulatory restrictions and bankruptcy for his futures trading business and criminal charges.

Since then, two companies have filed liens in Black Hawk County District Court.

The mechanics' liens are a way for creditors to stake a claim.

“Lien holders have rights ... and I suppose we're all stymied by a bankruptcy filing on enforcing those rights, so I think everybody is sort of in a wait-and-see mode at the moment,” said Eric Johnson, an attorney who filed a lien on behalf of Plumb Tech Inc.

Cedar Falls-based Peregrine has been accused of misappropriating more than $200 million of customer funds. Wasendorf, 64, the founder and chief executive officer of the company, was charged July 13 in federal court in Cedar Rapids with making false statements, and Peregrine filed for liquidation under Chapter 7 of the U.S. Bankruptcy Code on July 10.

Woodland Construction Co. of Cedar Falls filed a $109,285 July 25 against Wasendorf Construction for work done on 110 E. Third St.

According to Courier archives, the Third Street address was to be a facility to prepare sauces, soups and pastas for My Verona and another restaurant that had been planned for the TechWorks site.

Woodland filed to place a another mechanic's lien on Wasendorf's $964,000 home at 8901 W. Cedar Wapsi Road for $19,973 worth of work. The invoice notes a “garage addition/outdoor oven.”

Plumb Tech Inc. of Waterloo filed a $3,394 lien July 30 against My Verona, 419 Main St., for work done on a condenser and air conditioning equipment.

Wasendorfis being housed at the Linn County Jail in Cedar Rapids, which is customary because the U.S. District Court for the Northern District of Iowa is based in Cedar Rapids.

On Tuesday, authorities released Wasendorf's booking photo, following a request by The Courier.

The photo shows his face with his body covered by a cloth barrier because at the time it was taken, he was on suicide watch and wore only shorts.