Peregrine Financial trustee will get $7.25 million settlement payment

By Kali Hays

New York, Aug. 8 – Peregrine Financial Group, Inc.’s Chapter 7 trustee, Ira Bodenstein, obtained court approval of a $7.25 million settlement of claims against Tom and Kay Herrmann, according to a filing with the U.S. Bankruptcy Court for the Northern District of Illinois.

As previously reported, during the course of his investigation of the fraud perpetrated by Peregrine founder Russell Wasendorf Sr., Bodenstein discovered that, between October 1994 and July 10, 2012, one or both of the Herrmanns received transfers in excess of $30 million from segregated Peregrine customer fund accounts while also having invested funds with Wasendorf-related entities.

Under the approved settlement, Bodenstein’s claims will be released in exchange for the Herrmanns’ payment of $7.25 million.

Peregrine is a Chicago-based futures broker. The company filed for bankruptcy on July 10, 2012 under case number is 12-27488.

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