Russell Wasendorf Sr., former CEO of Peregrine Financial Group, has pleaded guilty to embezzling more than $100 million from customers for his futures brokerage, lying to investigators to cover his tracks, and mail fraud. Wasendorf agreed to plea guilty earlier this month and thought he would be freed from jail pending his sentencing. However, the judge is holding him behind bars after its determine whether Wasendorf is a flight risk. Click below to read more.
Peregrine Financial Group’s former Chief Executive Russell Wasendorf Sr. pleaded guilty on Monday to embezzling more than $100 million from customers of his futures brokerage, lying to regulators to cover his tracks, and mail fraud.
Previously expected to be set free from jail pending his sentencing, Wasendorf was told he will remain behind bars while a judge determines whether he is a flight risk.
Wasendorf, 64, agreed earlier this month to plead guilty after confessing in July to stealing from his customers for nearly 20 years.
In a small courtroom in Cedar Rapids, Iowa, Magistrate Judge Jon Scoles confirmed that Wasendorf wanted to plead guilty to each of four charges.
“Are you pleading guilty because you are guilty?” Scoles asked the former futures-industry executive, who was wearing an orange prison jumpsuit and shackled at the wrists and ankles.
“Yes, your honor,” Wasendorf replied.
Prosecutors said in court that Wasendorf, who faces up to 50 years in prison, should spend the rest of his life behind bars. Wasendorf’s public defender argued for a sentence of about 24 to 30 years, which could be a life sentence given his age.
A date for his sentencing was not set.
