Peregrine Financial Group accused of embezzlement

Some businesses will need to be careful when deciding on which company to partner, take part in a transaction or merger with. Fraud is a dangerous thing to be accused of and avoiding being implicated in such lawsuits is important. However, if a business owner did make a mistake, consulting Phoenix business lawyers is advised.

Peregrine Financial Group is one such company that has been accused of fraud and have been implicated in a class action lawsuit, according to the Des Moines Register. This brokerage firm shut down in July when more than $200 million was found missing from customer funds.

Willow Trustees Limited is another financial services firm that has joined plaintiffs in seeking class action status against the company. Today, Magistrate Jon Scoles will be issuing his final decision on a plea agreement between Russel Wasendorf, the former CEO of Peregrine Financial, and the plaintiffs.

The victims in this case claim that the CEO for the financial company committed mail fraud, embezzled customer funds and misled regulators. More than 23,000 Peregrine customers have had their accounts frozen due to these mishandlings of business processes and the alleged embezzlement of funds.

The San Francisco Chronicle reported that Wasendorf alleged that employees at the U.S. Bank helped him mislead a number of regulators in his attempt to steal money from consumers. The bank, however, rejected these claims, saying that the former CEO is merely trying to take the blame away from his misconduct.

"US Bank Senior Vice President Tom Joyce said Tuesday the lawsuit filed by Peregrine President Russ Wasendorf Jr. is 'entirely without merit' and that no bank employee committed misconduct," the news source stated.

In cases of possible fraud or misconduct, Arizona companies may need to speak with a business attorney in Phoenix.

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