Federal prosecutors argue for maximum sentence for ex-Peregrine Financial Group CEO Wassendorf

Federal prosecutors are seeking the maximum sentence for Peregrine Financial Group ex-CEO Russ Wassendorf Sr., who pled guilty in September to mail fraud, embezzling customer funds and making false statements to two regulatory agencies. Wassendorf orchestrated a $215 million fraud that victimized more than 10,000 customers and bankrupted his Iowa-based brokerage. For years, he had fabricated financial statements in order to cover up the firm’s financial shortfalls, and last June, when it became clear he could no longer hide the truth from regulators, he attempted to commit suicide. His fate is soon to be decided by U.S. Distruct Judge Linda Reade, who has a reputation for handing down tough sentences. In her denial of Wassendorf’s release pending sentencing, she noted that Wassendorf had an incentive to flee once released, as the 64-year-old businessman faced the likelihood of spending the rest of his life behind bars.