Former Peregrine CEO Charged With Fraud

In his suicide note, he confessed to embezzling from customers

   

Russell Wasendorf Sr., the former CEO and founder of the failed Peregrine Financial Group, who attempted suicide as regulators closed in last month, has been charged with 31 counts of fraud.

Federal prosecutors filed the charges in the U.S. District Court for the Northern District of Iowa, CNN noted.

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The government alleges that between October 2010 and May 2012, Wasendorf filed 31 monthly financial statements with the Community Futures Trading Commission that presented a completely false picture of Peregrine Financial Group’s financial position.

Police discovered Wasendorf in his car with a suicide note outside his office in early July apparently having attempted to take his own life.

In the note, Wasendorf confessed to having “committed fraud,” saying he had embezzled from customer accounts. He added that his fraudulent activity had been going undetected for twenty years.

Regulators say more than $200 million in customer funds are missing from Peregrine’s accounts.


Article printed from InvestorPlace Media, http://investorplace.com/2012/08/former-peregrine-ceo-charged-with-fraud/.

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