Peregrine CEO Arrested

[Roland99]

Source: Wall St. Journal

The chief executive of collapsed brokerage firm Peregrine Financial Group Inc. was arrested Friday and charged with lying to regulators, according to the U.S. Attorney's Office.

Russell Wasendorf Sr. admitted to law enforcement authorities this week that he embezzled "millions of dollars" and forged bank statements for "nearly twenty years," according to a court complaint released Friday.

...

The Commodity Futures Trading Commission on Tuesday levelled civil charges on Mr. Wasendorf and Peregrine, alleging that about $215 million in customer money had gone missing.

The shortfall came to light after Mr. Wasendorf attempted suicide Monday morning, one day after agreeing to allow regulators to electronically audit his firm's accounts, according to people familiar with details of the investigation.

Read more: http://online.wsj.com/article/SB10001424052702303740704577524873909864282.html

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full suicide note:

http://www.zerohedge.com/news/full-pfg-ceo-suicide-note

[PoliticAverse]

1. 'and forged bank statements for "nearly twenty years,"'

That's some fine work there auditors and CFTC...

[FarCenter]

14. And regulators were mailing US Bank requests for confirmation of balances at a PO box he set up

The CFTC is completely incompetent. Heads should roll, starting with Gensler.

[valerief]

2. Was it one of those stab-yourself-multiple-times suicide attempts? nt

[Cairycat]

3. This is a business where I live and lots

of people suddenly found themselves out of work Monday morning when Wassendorf's empire came crashing down. It wasn't just people who worked for the Peregrine Financial Group, Wassendorf also had a restaurant and deli here, and the restaurant employees are also suddenly out of a job. It's a huge mess, and it will cause a lot of heartache for a lot of people.

That slimy Santorum was right on the spot earlier saying that people shouldn't take something like this as meaning we need more regulation. Yeah right, we should have less regulation so scams like this can be perpetrated more easily - NOT!

[aggiesal]

6. Where is here?

Are you still located at your current location info?

[Cairycat]

10. Cedar Falls, Iowa

there's a raft of articles about this in our local paper: http://www.wcfcourier.com

[progressoid]

7. Screw Santorum.

This is going to hurt a lot of good people.

Hang in there Cedar Falls.

[TBF]

9. That's the sad part of this - we all know plenty of bank employees

who are low level and don't make the money the top guys/gals do. Unfortunately they will be the ones to suffer along with the rest of us.

[sendero]

4. When is Jon Corzine..

... going to be arrested? After all, he "started" this whole new game.

[PoliticAverse]

8. Corzine...

http://www.nypost.com/p/news/local/corzine_is_having_no_fun_in_the_j3V0C11N4SPYJuG7YFBnsJ

[sendero]

16. Well...

. I'm touched that he is not enjoying the social swirl he used to. However, as the CEO of a company that "lost" 1.2 billion dollars of customers' money, according to Sarbanes Oxley it is HIS PROBLEM whether his storys of "I don't know what happened" have any merit or not.

There is plenty of evidence (mostly emails) that indicate he was right in the middle of the theft and if he weren't so politically connected HE WOULD BE IN JAIL or at best OUT ON BOND right now.

[xtraxritical]

18. Romney's caught lying on official government documents and so far nothing. wtf.

[sendero]

20. Lying about documents...

...... is not quite in the same league as gambling with 1.2 billion dollars that is not yours and losing it. Not even close.

[alfredo]

5. The peregrine is a predatory. That should have been a

Tip off to customers.

[Bossy Monkey]

12. The peregrine falcon is. Peregrine just means wandering

as in peregrination, or foreign. Not a brilliant name for a company as such either.

[alfredo]

17. They're assholes no matter what their name.

[dixiegrrrrl]

11. Wait a minute....I thought he was in a coma????

and double wait:
he admitted to forgery, fraud and embezzlement and was arrested for...lying??????

[Po_d Mainiac]

15. Patience

The charges are likely to be lowered to 'attempting' suicide, and his restful stay in the hospital will be considered 'time served'

[dixiegrrrrl]

19. Meanwhile, Corizine walks around free and uncharged.

[Po_d Mainiac]

21. I'm sure there is a sternly worded

letter warning that several committees are being formed to write additional sternly worded leters. But those will be mis-labeled when the next envelope of campaign contributions is delivered.

[Scuba]

13. This guy is able to commit hundreds of millions in fraud, over many years ....

...with little more than an ink jet printer yet the Republicans think he's over-regulated.

[lindysalsagal]

22. It's becoming more and more obvious that these financial tycoons

really lose track of reality in their penthouses and plush suites. They really don't believe they'll ever get caught. Happens over and over again. There's always another one willing to take the fall for the big money rush that proceeds it.

[exboyfil]

24. I am sure he lived a a somewhat lavish lifestyle

but a lot of the money was flowing into the community (lots of non profits like the local university are probably pretty nervous right now as the various agencies etc will look to claw back contributions).

His company was like a poster child for a good employer - free meals during the day, on site child care and Montessori, great benefits, and good pay. I guess if I was a farmer with an account with him I would wonder how the commission I paid was paying for all of this.

The front line of the regulation appears to be an industry body in which he had a leadership position in. I don't understand how we cannot recognize that having foxes guard the henhouse is wrong. Earlier we had the SEC employee sleeping with and marrying Madoff's niece.

Don't you think people in the know (such as this man's son) had to have the information to know something was up. Since they were not involved (except for cashing the outsized checks), then they can remain willfully blind (kind of like Madoff's clan).

I have not heard about the CFO. Isn't that officer tasked with ensuring that financial documents are in line. How could that person accept the CEO intercepting documents. I would think that these would be warning signs for a trained accountant (or anyone with common sense).

[lindysalsagal]

25. Very telling how Mitt, himself, is claiming ignorance of his company business

Seems that rationalization must have worked for other liars.

[tawadi]

23. But the comments to the suicide note link

[AnotherMcIntosh]

26. Steal from the rich (through embezzlements or ponzi schemes) = you get prosecuted.

Steal from everyone (through derrivative frauds or related frauds) = you get bailouts and bonuses.