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Wasendorf & Peregrine assets headed for auction

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  • Russ Wasendorf Sr. and PFG

    Russ Wasendorf Sr. and PFG

    The CEO of PFG stole more than $215 million from more than 13,000 victims and was sentenced to 50 years in federal prison. All related stories can be found here.More >>
    The CEO of PFG stole more than $215 million from more than 13,000 victims and was sentenced to 50 years in federal prison. All related stories can be found here.More >>
CEDAR FALLS (KWWL) -

Russ Wasendorf, Sr. awaits his sentencing after pleading guilty Tuesday to several criminal charges in the Peregrine Financial scandal.

A Chicago-based bankruptcy law firm is combing through all of Wasendorf and Peregrine's assets in preparation for public auction.

Among Wasendorf himself, Peregrine, and its subsidiaries, there are millions of assets going on the auction block.  But right now, there's no exact tally on just how many items there are and what their value could be.  It's still being compiled.

What's clear, there are some major assets, from property to high-end collectibles, and a slew of wine, to be sorted through.  While Wasendorf signed a note detailing his fraud stating, "I don't live a lavish lifestyle," the assets he accrued tell a different story.

"There's a substantial amount of assets for myVerona the restaurant, the equipment, all the way through his personal property, which consists of cars, there's a boat, there's some snowmobiles.  We sold some guns pursuant to a court order," said Michael Eidelman, receiver in the Peregrine case and bankruptcy attorney for Vedder Price.

That's just the beginning.

You can add to the list an estimated 4,000 bottles of wine stored at myVerona, valued at over $100,000, a collection of sports memorabilia and fine jewelry.

There are also three homes:  Wasendorf's main residence in Black Hawk County, which is a sprawling estate with a security gate, lake, and pool.  On top of that, assets to be liquidated include a luxury condo in Chicago, and a corporate house near PFG's headquarters in Cedar Falls.

"Under the terms of the order pursuant to which I was appointed, any asset that has value over $250,000, I need to obtain court approval to sell.  Anything under $250,000, I can sell without court approval," Eidelman said.

That includes all Wasendorf's personal belongings from clothing to dinner plates.  After the assets are sorted through, and needed court approvals obtained, all of it will go up for sale through both a live and online auction.  Then even more work begins -- determining who gets the auction's proceeds.

"Once we're able to liquidate all the assets and collect all the money, the money's going to be deposited into my receivership bank accounts.  Then we'll petition the court to make a distribution," said Eidelman.

Complicating things further -- there are likely dozens of people who will file claims for that money.  So the courts will determine what creditors, even former employees, might be eligible for a slice of the pie.

The public auction will go live later this fall, and will take at least two days to complete. 

Some of Peregrine's assets will be handled separately, including the company's $20 million  headquarters.

It's also hoped myVerona can be sold aside from the public auction.

The Chicago condo is currently listed with a realtor.

 

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