Case Study : The Bernie Madoff Scandal Essay

1078 Words Oct 22nd, 2015 5 Pages
Less than five years after the Bernie Madoff scandal, in the small town of Cedar Falls, Iowa, Russell Wasendorf Sr. worked as the CEO of Peregrine Financial Group, Inc. Known to many as PFGBEST, this futures commissions merchant firm, worked to match buyers and sellers of commodities. The company’s revenue structure was based on commissions for services and was thus driven on their customers need for security. Wasendorf had a significant role in his company, acting as the only employee with access to the firm’s customer accounts at U.S. Bank (Philips, 2012). He regularly viewed bank statements, monitoring customer accounts and balances. In the community, Wasendorf was seen as a local hero, bringing his large business back to the small town he was originally from. He built a state of the art headquarters, lived a lavish lifestyle with his family, and despite his ego, had a reputation of generosity, donating money to local charities (Huffstutter, 2013). However, his charitable acts were just a cover, masking his pent-up guilt over a twenty-year long secret. In July of 2012, Wasendorf could no longer keep his secret and the guilt of hiding it finally took over him. He was found behind his headquarters in Iowa, unconscious in an attempted suicide. With a tube running from his exhaust pipe into his vehicle, passers found him and a suicide note and immediately called the police (Arens, Elder, Beasley, 2013). In his suicide note he admitted to committing fraud over the past twenty…

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