Peregrine Financial trustee proposes $5 million claims distribution

By Kali Hays

New York, Dec. 4 – Peregrine Financial Group, Inc.’s Chapter 7 trustee, Ira Bodenstein, is seeking court authorization to make a $5 million cash distribution to two classes of customer claimants from $34 million of segregated funds, according to a Thursday motion with the U.S. Bankruptcy Court for the Northern District of Illinois.

The motion states $9.76 million of the funds are the result of approved settlement agreements with Connie Wassendorf and Tom and Kay Hermann related to company fraud perpetrated by Peregrine’s founder, Russell Wassendorf Sr.

According to the motion, Bodenstein says approximately $3 million of claims left in one group are deemed entitled to treatment. About $356 million of these claims have already been paid by the estate.

The other class has about 15 claims left to be resolved, and though several of the claims are awaiting assessment, Bodenstein estimated about $2 million will be paid to the remaining claimants. The class has received $28 million in payments to date and an additional payment to the creditors will result in a complete payment of the class.

Certain claimants have previously received partial distribution of their claims and as such, will be paid a proportionate share of undistributed funds, according to the motion.

A hearing to approve the allocations and access to the funds is scheduled for Dec. 11.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.