STOCK MARKET WATCH -- Tuesday, 14 August 2012

[xchrom]

20. IOWA BROKERAGE CEO INDICTED IN $200M FRAUD SCHEME

http://hosted.ap.org/dynamic/stories/U/US_FAILED_BROKERAGE_INDICTMENT?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-08-13-19-23-58

IOWA CITY, Iowa (AP) -- The founder of a bankrupt Iowa-based brokerage was indicted by a federal grand jury Monday on 31 counts of making false statements to regulators in connection with a $200 million fraud scheme.

Peregrine Financial Group Inc. CEO Russ Wasendorf Sr. could face up to 155 years in prison if convicted on all counts, prosecutors said. His attorney didn't immediately return a phone message Monday, and the date for an arraignment, where Wasendorf will enter a plea, has not been set.

Wasendorf, 64, was arrested last month while hospitalized in Iowa City following a failed suicide attempt outside Peregrine's office in Cedar Falls. Authorities said Wasendorf left a detailed suicide note in which he confessed to a 20-year scheme to commit fraud and embezzle customer funds.

Regulators said Wasendorf's company cannot account for more than $200 million in customer funds that it was supposed to be holding. Peregrine has filed for bankruptcy and is liquidating its assets, meaning more than 24,000 customers who used the company to invest in commodities ranging from corn to gold don't have access to their funds.