The founder of futures brokerage Peregrine Financial Group, which filed for bankruptcy protection after regulators said more than $200 million went missing from the firm, has been arrested and charged with making and using false statements, authorities said Friday.
Russell Wasendorf Sr. was arrested Friday by FBI agents and is due to make an initial appearance in federal court in Cedar Rapids, Iowa, on Friday afternoon, the U.S. Justice Department said.
Peregrine filed for Chapter 7 bankruptcy protection on Tuesday after Wasendorf Sr. attempted suicide amid allegations of fraud, CNNMoney reported Wednesday.
The Commodities Futures Trading Commission filed a complaint against Peregrine on Tuesday, accusing the firm and Wasendorf Sr. of committing fraud by misappropriating funds and falsifying bank records.
Friday's charges allege that, from 2010 through July 2012, Wasendorf made false statements to the commission regarding the value of customer segregated funds held by Peregrine, the Justice Department said.FULL STORY