Subscribe Now

travelers today

Home » Trending News

Ceo Gets 50 Years in Prison: Russell Wasendorf of Peregrine Financial Group Stole Millions of Dollars From Firm

Travelers Today       By    Lena Vazifdar

Updated: Jan 31, 2013 06:00 PM EST

Text Size: A A A

Russell Wasendorf Sr
Former Peregrine Financial Group founder, Russell Wasendorf Sr. has been sentenced to 50 years in prison.(Photo : Reuters)

Former Peregrine Financial Group founder, Russell Wasendorf Sr. has been sentenced to 50 years in prison on Thursday. Reuters reported that Wasendorf had stolen hundreds of millions of dollars from the brokerage.

Wasendorf tried to kill himself before it was uncovered last year. He was also ordered to pay $215.5 million and was a 20-year scheme.

CBS reported that Wasendorf was found unconscious outside the headquarters of the company last July when he attempted suicide in his car by connecting a tube to an exhaust pipe. He also left a suicide note that confessed the fraud and said that "his ego was too big to fail."

Share This Story

"A local hero in Iowa known for his charitable work and lavish lifestyle, Wasendorf triggered the collapse of the brokerage through his fraud. The scam shook investors' confidence in the U.S. futures industry, already rattled by the failure of larger rival MF Global less than a year earlier," reported Reuters.

Wasndorf said at the sentencing hearing in Cedar Rapids, Iowa "I'm very sorry for the financial and emotional damage I've caused to investors and employees of Peregrine Financial Group. I feel I fully deserve whatever sentence I am given," he said. "My guilt is such I will accept that sentence."

In July of last year he admitted to billing tens of thousands of clients for over two decades.

U.S. District Judge Linda read said to Wasendorf at the hearing that he caused "staggering losses" to investors, employees and creditors, reported CBS.

"By imposing a substantial sentence, the court sends a message that white collar criminals may serve long prison sentences for stealing money from other people," Reade said according to CBS.

Wasendorf pleaded guilty for misusing $100 million or more to cover business losses.

Regulators found after his attempted suicide and admission that PFGBest couldn't account for more than $200 million in funds from customers that it was supposed to be holding. The firm filed for bankruptcy protection and nearly 24,000 customers could not access their accounts and have not been reimbursed for their losses, reported CBSL.

"Customers who opened accounts to trade commodities have received between 30 and 40 percent of their money back, while customers who traded foreign currency have received nothing because that activity has less legal protection," reported CBS.

Amongst Wasendorf's spending he used the money on things like a corporate jet, fancy restaurants in Cedar Falls, and a publishing company.

© 2014 Traverlers Today, All rights reserved. Do not reproduce without permission.
Join Our Conversation

ADVERTISEMENT

Travel Tips

Traveling with Liquids

Travel Hacks: Traveling with Liquids

Liquids can be one of the trickiest parts of packing for a flight, especially if you are bringing a carryon. Either they are over the limit, or they leak in your bag. Whatever the reason they seem to be a nuisance.

Subscribe to our newsletter

Receive the latest travel news, reviews, and more..

Want more Travel?

Most Popular

See pandas up close and personal at the Chengdu Research Base of Giant Panda Breeding.

Up Close and Personal with Giant Pandas: Chengdu is Calling

Settled in Southwest China is the city of Chengdu. It has lots of beautiful gardens and structures, but what it is most well known for is the Chengdu Research Base of Giant Panda Breeding. The research base is just outside the city center and gives tourists a chance to see giant pandas up close in a truly unique way.

Massive Delays, All Flights Halted At Chicago's O'Hare and Midway international airports due to air traffic control fire

Chicago Plane Crash 2014: Pilot Dies, Elderly Couple Miraculously Survive, What Led To Crash?

Chicago plane crash 2014 – Shortly after taking off at the Midway Airport Tuesday morning, a twin-engine cargo plane had crashed at the Southwest Side home. The plane's driver has been confirmed dead while the residents of the home, being an elderly couple, had miraculously survived.

Thai royal flag

Thai Radio Host Jailed: Five-Year Prison Sentence For Monarch Defamation, No Room For Appeal In Military Court?

A Thai radio host jailed recently was put behind bars for five years due to royal defamation, according to his lawyer Tuesday. The Thai radio host jailed is reportedly one of the first sentences passed by a military court for breaching the Lese Majeste Law since a May coup.

Gordon Ramsay

Gordon Ramsay: Fake Reservations At New Restaurant Are Part Of Rival's 'Sabotage' Plan

Gordon Ramsay got fake reservations in his restaurant and they were apparently from his rival restaurant.

Holiday Getaway

Why You Should Head To Europe For Your Next Holiday Getaway!

Thinking of traveling this Thanksgiving and Christmas season? But afraid spending much too much over your next last-minute getaway? Here are some of the best tips to follow if you intend to save much while enjoying the perfect European holiday getaway.

New York Pot Arrests

New York Pot Arrests: New Policy Promotes Summonses Instead Of Arrests Since Officers Want To Focus On Other Crimes

New York pot arrests are going to be different this time around after a few changes on the city's marijuana policy have been made.

USS Ross Sailors Attacked By Turkey Youth Union In Istanbul

USS Ross Sailors Attacked By Turkish Mob In Istanbul, Bags Placed Over Heads?

USS Ross sailors attacked by about 20 political activists happened in Istanbul Wednesday. Members of the Turkish Youth Union hurled objects at them, chased the three men and at one point, placed a bag over one of the heads of the USS Ross sailors attacked.

Pack of street dogs

Pack of Dogs Responsible For Wyoming Woman’s Tragic Death

Pack of dogs named responsible to a death in Wyoming on Wednesday.

Napoleon Bonaparte's bicorne hat.

Napoleon Hat $2.4 Million Sold To South Korean Collector; Famous Chapeau Of Napoleon Bonaparte Estimated To Sell At $500K Was Purchased For More Than $2M

Napoleon hat $2.4 million was sold at a recent action. A collector from South Korea, whose identity has not been revealed, purchased the famous chapeau.

Find Us on Facebook

travelers today

© Copyright 2014 Travelers Today All Rights Reserved.

Subscribe to our newsletter
Real Time Analytics