CEDAR RAPIDS, IOWA — Disgraced financier Russell Wasendorf will be at least 107 years old by the time he’s eligible for release from prison under the 50-year sentence handed down Thursday in Cedar Rapids.
The former head of the defunct Peregrine Financial Group futures and commodities brokerage stole $215 million from more than 13,000 customers over a 20-year period. The 64-year-old Marion native pilfered customer funds to live a lavish lifestyle and expand the business, which prosecutors said was never profitable on its own.
Investor confidence in the sanctity of the $37 trillion futures market was shaken by details of the scam that were contained in suicide notes discovered after Wasendorf’s botched attempt to take his own life July 9.
“This is a very serious offense with staggering affects to the victims and ripple effects,” U.S. District Judge Linda Reade said. “The sentence I impose must be a deterrent to others.”
Federal sentences are only reduced by a maximum of 15 percent for good behavior, which means that Wasendorf must serve a minimum of 42.5 years before being eligible for release. Reade noted that his victims included 13,000 investors and more than 200 employees.
Wasendorf must also serve a... Read the full article here.
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