Sunday, 1 March 2015
Last updated 2 days ago
Jan 16 2013 | 11:26am ET
The founder of collapsed futures brokerage Peregrine Financial Group will be sentenced at the end of the month.
Russell Wasendorf is facing what could amount to a life sentence; the 64-year-old could be sent to prison for between 24 and 50 years for defrauding clients of more than $200 million. His sentencing is set for Jan. 31, according to a court filing this week.
Wasendorf pleaded guilty to mail fraud, embezzlement and making false statements to regulators in September. He was arrested in July as PFG fell apart and just before he attempted suicide. In a written confession, he admitted to "fraud" and to having "cheated," acknowledging he took "more than $100 million" in client money to shore up the firm.
Wasendorf has remained in custody since his arrest.
In addition to decades in prison, Wasendorf could be fined $3.3 million. He's already agreed to pay restitution, although the trustee liquidating PFG has said customers could face losses of up to $190 million. A recent auction of Wasendorf's and PFG's property raised just $1 million.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…