Russell Wasendorf Sr., founder of the bankrupt commodities firm Peregrine Financial Group Inc., pleaded guilty to stealing more than $100 million from its customers.
Wasendorf, 64, on Monday admitted to embezzlement, mail fraud and two counts of lying to federal regulators in an appearance before U.S. Magistrate Judge Jon Scoles in Cedar Rapids, Iowa.
Wasendorf, dressed in a prison-issue orange jumpsuit, was handcuffed and wearing leg shackles during the hearing. He was taken into custody after U.S. District Judge Linda Reade earlier Monday overturned Scoles’ ruling that Wasendorf could remain free on bail until sentencing.
In response to the judge’s direct questions, Wasendorf replied “guilty” to each of the four charges. He made no other comment.
The plea agreement calls for a prison sentence of as long as 50 years. Scoles said he would recommend to Reade to accept the plea. Reade will also set a sentencing date.
Assistant U.S. Attorney Peter Deegan told Scoles that Wasendorf could serve a life sentence under federal sentencing guidelines.
Jill Johnston, Wasendorf’s lawyer, said Wasendorf could serve 25 to 30 years if he receives reductions under the guidelines.
Wasendorf’s crimes came to light July 9 when the National Futures Association, an industry self-regulator, announced that about $200 million in customer funds the firm reported as on deposit at its bank were unaccountable.
