Fraud, a suicide attempt and the breakdown of family ties.
Regulators in charge of monitoring the bankrupt futures brokerage Peregrine Financial Group missed warning signs as far back as 1994, according to an independent report released on the same day Peregrine's founder was sentenced to 50 years in prison.
Russell Wasendorf Sr., founder of the bankrupt commodities firm Peregrine Financial Group Inc., pleaded guilty to stealing more than $100m from its customers.
Even though many suspect Peregrine Financial Group founder Russell Wasendorf Sr. had help pulling off a $200 million fraud, prosecutors are willing to let him plead guilty to reduced charges without saying who, if anyone, helped him.
Talk about being kicked when you are down.
Peregrine Financial Group founder and chief executive Russell Wasendorf Sr was indicted on charges of lying to regulators, a little over a month after he botched a suicide attempt and confessed to bilking customers of his brokerage for years.
The U.S. Commodity Futures Trading Commission reviewed operations at Peregrine Financial Group Inc. at least twice since 2006 without detecting the fraud that led to the collapse of the futures broker and a $200m shortfall in client funds.
The U.S. Commodity Futures Trading Commission (CFTC) has announced that it filed a complaint in the United States District Court for the Northern District of Illinois against Peregrine Financial Group Inc. (PFG), a registered futures commission merchant, and its owner, Russell R. Wasendorf, Sr.(Wasendorf).