Wasendorf’s Next Gig

Russ Wasendorf has already put together his next project. We’re talking about Jr., of course. He’s trying to get back on his feet while the old man sits in jail, having launched what looks to be an eBay/Craigslist fusion to help people sell their old stuff to one another.

Having evidently decided that Cedar Falls holds too many bad memories (and really, who could blame him?), Russ Jr. has relocated to Orlando and launched “Orange Tree Deals.” And he has some  truly edifying thoughts about the role of trust in a marketplace, as well as the dangers of counterparty risk:

Upon arriving to Florida I was looking to start my own business.  I had experience in technology and more importantly I had 25 years of experience in the financial markets.  I understood the basics of a market place were transparency and creating a centralized location for people to meet.  Finally the most important component was trust.  In market terminology it is called counterparty risk which just means the risk the person on the other side of a deal either as the buyer or seller would not deliver goods in the quality promised in the manner promised or that the buyer would not pay with good funds the amount promised.  This risk was diminished by creating a membership where only buyers and sellers that were known to each other could exchange goods for money.  They met face to face and knew each other.  It was very much like a community.  A neighborhood.

With all that’s happened in the last 9 months, we’d say Russ Jr. has a pretty good idea about what counterparty risk means. Considering his firsthand experience, the above is a little much even for us, but we’re trying very hard to reserve judgment. (As long as the Feds keep saying there’s no evidence Jr. knew about his father’s misdeeds, we’ll take him at his word. But, that doesn’t mean we aren’t still rooting for the plaintiffs in the civil case against him.)

And as for his new e-commerce gig, we truly wish him the best of luck. In fact, we’re knocking on wood, donning our lucky rabbit’s foot, and hanging up some horseshoes in his honor. We’re hoping that Orange Tree Deals will take off and become the next big dot-com success story. Hopefully they’ll wind up getting a 100 million IPO or so… and then the proceeds can go to paying PFG clients back the money that was stolen.

One comment

  1. I cannot imagine that as COO of PFGBest, Wasedorf Jr didn’t know and didn’t cooperate with what was going on. He had to know the financials. What, he didn’t know that over $200M, about half the company’s net worth was missing??? It’s clear that Sr took the blame for everyone involved because it didn’t change his own fate. He had to have assistance, both on the inside and outside of PFG.

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The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

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