Peregrine Financial CEO To Go Home

Tyler Durden's picture

Remember Peregrine Financial, the firm that just like MF Global, ended up vaporizing $200 million in client money after it was revealed that its suicide-challenged CEO Russell Wasendorf was stealing operating cash for two decades under the nose of the CFTC? Yes? Good. Because in four days, said CEO will be relaxing in the comfort of his own home. It seems odd to us that the man who caused hundreds of clients to lose up to all of their life's savings, will be hanging out on his leather sofa, if only until such time as a one-way first class ticket to a non-extradition country is consummated. But who knows: perhaps this is all part of the "New Fairness Normal" where fraud and crime is if not rewarded, then certainly ignored.

From Reuters:

Peregrine Financial Group Chief Executive Russell Wasendorf Sr., who has confessed to stealing millions of dollars from clients, will be released from a county jail after he pleads guilty on September 17 to mail fraud, lying to regulators and embezzling customer money, according to a judge's order.


Wasendorf, 64, will stay in the home of an Iowa pastor pending sentencing for the crimes, the order said.


Wasendorf attempted suicide on July 9 near the headquarters of his Cedar Falls, Iowa, brokerage and left a signed confession of a 20-year-long fraud.


The search continues for the money he stole. Former clients are still unable to access funds frozen since the firm's bankruptcy on July 10.

Well, we now know where Mr. Wasendorf will not be in one month: prison. We know tentatively where he will be: somewhere in the south Pacific, on a private island purchased with a portion of the $200 million in stolen money. It is possible that that other hedge fund capital raising expert-cum-vaporisateur extraordinaire Jon Corzine may be in the vicinity. Who knows.

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knukles's picture

Grand Theft Country with Impunity

Nadaclue's picture

Yo Brother,

God don't give two shits about America. God doesn''t care what happens on earth. God only deals with whatever happens after you leave earth. Ya don't love god? God doesn't care until, your mortal soul leaves/departs earth. Is there a God? I dunno, everyone's got to choose for themselves, based on these ideas.


That is the long and short of it. Ya makes yer choices and ya takes yer chances.

imaginalis's picture

Unlike this turd, the Robin Hoods who were throwing cash out of the windows to the poor will be locked up without mercy for a very long time.

GetZeeGold's picture



I love it in Paris....I love it in Rome, but I always feel better....safely tucked in at home.


sessinpo's picture

You're certainly right about one thing - everyone has to choose for themselves.

And when you approach the figurative pearly gates, your excuse will be. Lord, I nadaclue.

NotApplicable's picture

Think his pastor is going to teach him the Swaggert line, "I have sinned against you."?

Colonel Klink's picture

One can only hope that some day in the near future, someone who has lost everything because of these criminals goes off the deep end and takes them out one by one.

Hypothetically speaking.......  ... .. .....  ...

ghengis86's picture

Free Corzine and Wasendorf!

Oh wait, what the fuck did I just read?

Next thing you'll tell me Rusty is on his Bloomberg.

Temporalist's picture

I think there will be an exploding need for "Food Testers" - so Ben's employment policy is working in some markets.

Stoploss's picture

But they put the TYCO guy Kosloski in jail for a party??

Gonna have to let Bernie out or put these guy's in, it's an open double standard.


smiler03's picture

Bernie Madoff was on bail at home until he was sentenced. He stole quite a lot more money too. I'm not saying it's right, just stating a fact.

Colonel Klink's picture

Madoff, sadly he forgot the e in the middle.  I guess it would have been a tipeoff.

booboo's picture

Banksters adopted the military slogan :No one left behind" Gotta hand it to them fuckers, they stick together and go to bat for one another, it's no wonder they are kicking our ass all over the planet.

max2205's picture

And Standard Charter just settled for a big Mac earlier his week

Frank N. Beans's picture

with hyperinflation after today, that $200 million is the new $20 bill.


sessinpo's picture

We have yet to see hyperinflation. $40B a month, that's still less then half a trillion a year. Pocket change. Open ended just means that the same policy may extend to additional years.

What to watch for is less publicized treasury and FRB policies enacted throughout the year that are many times more then $40B a month and not just directed toward MBS.

e-man's picture

How to make money on Wall Street -- it all begins with trust...

billsykes's picture

From this in July;

CEO of collapsed Peregrine Financial faces 'decades in prison'

To nothing.  A guy who steals a toyota gets life.

what a scam anything related to procicution of financial crimes, and this guy was small fish- who has no pull.

Why do I think no pull?

Becuase if he had a lot of pull, then people with pull would have invested with him, and he would have been up shit creek.  Also if he was seeking pull he would have been smarter than pulling a scam like this when he could have legitimatly paid himself an indecent amount of money for a longer time and kept everything.

Rathmullan's picture

Off to Kobi Alexanderia

DogSlime's picture

You gotta be kidding?

He fucking ADMITTED the fraud!  He admitted it in writing!

Drop the fucking bomb.  There is no hope.

billsykes's picture

He admitted to 20 years of deception and fraud. Not like a one time thing. this was 20 years.

Yellowhoard's picture

Wasendorf, if you're reading this, listen to me.

You tried to kill yourself and failed.

Don't be a quitter.

Try, try again.

Nadaclue's picture

I really like your post. Well done Sir, well done.


Colonel Klink's picture

How is it that these guys never try shooting themselves in the back of the head......repeatedly?  Ya know, just like so many other tragic accidents that befall whistleblowers.

zorba THE GREEK's picture

I think I'll just puke now. I hope and pray that after the big crash, this will all be addressed 

and those who abused the trust of their brethren will reap what they have sown.

Yen Cross's picture

Close all the "small aircraft" landing strips!  [ immediately]

roadsnbridges's picture

Can't we just shoot them all, then shoot Placeholder while he decides if to prosecute?

Then god can sort them out.

sessinpo's picture

You'd probably get away with it if you were a democrat, a minority and in a union. I don't qualify for the democrat part so don't ask me and I dislike unions, but have to be in one to keep my current position (and I am working on leaving it).

ziggy59's picture

Maybe he can try again , friggin succeed this time, and save taxpayers money..

infinity8's picture

I think this entire day was designed to give me high blood pressure.

infinity8's picture

Got that covered. How much more stupid do I (we) have to put up with?

GoodMorningMr.VanRumpoy...'s picture

Better call the bounty hunter to bring this guy back wants he jumps bond. 

newengland's picture

'...But who knows: perhaps this is all part of the "New Fairness Normal" where fraud and crime is if not rewarded, then certainly ignored...'.

And the powerbrokers like it that way. They will be well tucked up in their gold plated lairs when the SHTF.

See Russia's oligarchs for an exemplar.

Meanwhile, it would be very silly for DC to imagine that they will be so fortunate. 

Lost Wages's picture

The great thing about this is he has a second chance to commit suicide.

WillyGroper's picture

The perpetual optimist. You went looking for the pony when you got horseshit in ur xmas stocking didn't you?

Dr. Engali's picture

So does he get $120 million for being a whistle blower a on himself?

Larry Dallas's picture

I bet on here we could solicit enough money to pay a former Army sniper with pancreatic cancer who wants to make something for his family to take this guy out and make an example of this Wasendorf fraud.

This should be how this is handled in the future. None of this born again, fish-on my bumper bullshit.


newengland's picture

You cannot pay for someone who is priceless; someone who defends the Republic whilst you demean them with your horrible suggestion, pet of politics.

Totentänzerlied's picture

You should expect nothing else from the law courts, unless of course you are of the delusional belief that the rule of law exists, existed, or ever will exist. It doesn't, didn't, and won't, because it can't - barring the magical creation of omnipotent omnicompetent unbiased incorruptible judges and juries.


smiler03's picture

This guy hasn't been let off. He gets sentenced on Monday the 17th. I think you should all relax until then. If he gets off, THAT'S the time to let your blood boil.


edit: and a big fucking zero to Tyler for winding you lot up. 

Also from Reuters: 

"Pending sentencing for the crimes, Wasendorf, 64, will stay in the home of an Iowa pastor who has counseled him in prison and socialized with him in recent years, the order said. He will wear an electronic GPS monitoring device. 

In approving Wasendorf's release, U.S. Magistrate Judge Jon Scoles said Wasendorf's chances to flee were limited as he had surrendered his passport and assets to authorities."

"He will wear an electronic monitoring device and be allowed to leave the house only for religious services, medical emergencies, and court-ordered obligations."

newengland's picture

Where is Jon Corzine now? Jon Corzine, ex Goldman Sachs, ex New Jersey Governor, still the favored son of Washington and Wall St, although his company stole from its clients?

Wassendorf and Corzine should be in jail. Do the crime, do the time. End of.

Only their expensive lawyers allow them to escape justice as it is known by most people.

smiler03's picture

Corzine is a spineless blatant thief that hasn't confessed to anything. He's an A1 cunt and will no doubt not be charged. Blame every single law enforcement agency in the US for not having him lined up for jail. 

Wassendorf has confessed and has been charged, awaiting sentence in three days time, 99.99 % likely to go to jail.  You cannot compare him to cunt corzine. 

WillyGroper's picture

  He will wear an electronic GPS monitoring device. 


So what's to keep him from putting it on his dog?

smiler03's picture

Or buy a homing eagle (i think a pigeon might be too small) that lives in Bermuda?

williambanzai7's picture

Which campaign will he be bundling?