Peregrine CEO Arrested
July 13, 2012 by UPI - United Press International, Inc.
CHICAGO (UPI) — Russell Wasendorf Sr., chief executive of Peregrine Financial Group Inc.,based in Iowa, was arrested Friday for allegedly lying to regulators, prosecutors said.
Wasendorf’s first court appearance was scheduled for Friday in Cedar Rapids, Iowa, The Wall Street Journal reported. He is accused of making false statements to federal commodities market regulators regarding customer funds.
The government says $200 million is missing from the brokerage firm.
Peregrine filed for bankruptcy Tuesday in Chicago after the Commodity Futures Trading Commission filed a lawsuit in federal court, accusing Peregrine and Wasendorf of fraud, customer-funds violations and making false statements.
Wasendorf, 64, attempted suicide Monday in Cedar Falls. Police said they found him in his car outside the company’s headquarters with a hose running from the car’s tailpipe. The Journal said he has been hospitalized all week.