Peregrine’s Wasendorf Signed Plea Deal, FBI Agent Says

September 12, 2012

Bloomberg Businessweek on September 11, 2012 released the following:

“By Andrew Harris and Tom Witosky

Russell Wasendorf Sr., the indicted founder of Peregrine Financial Group Inc., has signed a plea agreement with prosecutors in which he admits to crimes including mail fraud, an FBI agent testified.

William Langdon, the U.S. Federal Bureau of Investigation agent whose affidavit supported the original criminal complaint against Wasendorf in July, disclosed the agreement today at a detention hearing in Cedar Rapids, Iowa, federal court.

Wasendorf, who has been in custody since his arrest on July 13, was indicted last month on 31 counts of lying to U.S. regulators about how much client money his now-bankrupt commodities firm had on deposit.

He entered a plea of not guilty on Aug. 17 and hasn’t changed that plea since then. Langdon didn’t say if or when the plea agreement would be brought before the court.

U.S. Magistrate Judge Jon Scoles is presiding over today’s hearing, which he scheduled at Wasendorf’s request, according to a Sept. 7 order posted in the court’s electronic docket.

Wasendorf was arrested four days after trying to asphyxiate himself in his car outside Peregrine’s Cedar Falls, Iowa, headquarters. Langdon, in his July affidavit, said the firm’s founder had in his possession at the time of the suicide attempt a written confession that said he stole from the firm for almost 20 years.

At least $190 million in client funds is unaccounted for, Peregrine bankruptcy trustee, Ira Bodenstein, told creditors at a meeting yesterday in federal court in Chicago, where the company filed for liquidation on July 10.

The criminal case is U.S. v. Wasendorf, 12-cr-2021, U.S. District Court for the Northern District of Iowa (Cedar Rapids).”

Federal Mail Fraud Crimes – 18 U.S.C. § 1341

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

————————————————————–

To find additional federal criminal news, please read Federal Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.


Federal Indictment Alleges That Peregrine CEO, Russell Wasendorf Sr., Lied To Regulators Every Month Since Jan 2010

August 14, 2012
Russell Wasendorf Sr.
“Prosecutors say Wasendorf lied to regulators about the value of customer funds on a monthly basis in reports from January 2010 through May 2012.”

Forbes on August 14, 2012 released the following:

By: Halah Touryalai, Forbes Staff

“Russell Wasendorf Sr., the CEO of the now bankrupt Peregrine Financial Group, has been formally charged by a federal grand jury on 31 counts of misleading regulators.

Wasendorf lied to the U.S. Commodity Futures Trading Commission 31 times about the value of customer funds the firm held. Wasendorf, who’s been held in custody since being arrested in July, faces 155 years in prison and a fine of $7.75 million if convicted on all counts.

According to the indictment Wasendorf submitted false information for his U.S. futures and currency brokerage firm in its 2010 and 2011 financial statements.

Wasendorf “overstated the value of PFG’s customer segregated funds by at least tens of millions of dollars, well knowing and believing the actual value of PFG’s customer segregate funds was at least tens of millions of dollars less than stated in the financial documents,” the indictment says. []

The CEO’s false statements didn’t stop there, according to prosecutors in the U.S. Attorney’s Office for the Northern District of Iowa. Wasendorf lied to regulators about the value of customer funds on a monthly basis in reports from January 2010 through May 2012, prosecutors says.

Last month Wasendorf was arrested after regulators accused PFG of fraud, misusing of client money, violating customer fund segregation laws and making false statements about its finances. Peregrine file for bankruptcy and roughly $215 million in client assets are missing amid the mess.

Wasendorf’s arrest came just days after he attempted to take his own life outside his Iowa-based office building. According to police reports, the CEO attempted suicide and left a note stating that he had been stealing from the firm.

According to reports, the CEO attempted the suicide after a regulator pushed him to allow its auditors to electronically verify customer balances actually exist at its custodian bank–in this case, U.S. Bank.”

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

————————————————————–

To find additional federal criminal news, please read Federal Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.