31 Charges For Lying To Regulators

31 Charges For Lying To RegulatorsThe Chicago Tribune reported a story by Reuters, saying Russell Wasendorf’s arraignment is set for August 17. Russell Wasendor Sr., chief executive and founder of failed brokerage Peregrine Financial, will appear in front of a judge on August 17 after being indicted on 31 charges of methodically lying to regulators.

A court notice issued on Tuesday says Wasendorf is being held in a county jail in Cedar Rapids, Iowa, and his charges will be read to him in a Cedar Rapids courtroom. Typically these hearings, known as arraignments, involve the defendants entering a plea.

Wasendorf lied about the amount of customer funds at his brokerage by tens of millions in false monthly and yearly reports to the Commodity Futures Trading Commission, the indictment said.

According to the CFTC, Wasendorf also misappropriated over $200 million in customer funds. Futures brokerages must submit their financial data in monthly reports to the CFTC, and the reports are posted on the their website.

Wasendorf’s indictment has a possible maximum sentence of 155 years in prison, a $7.75 million fine, and 93 years of supervised release following any imprisonment, according to the U.S. Attorney’s office.

Reuters could not immediately reach the U.S. Attorney’s office that is prosecuting Wasendorf for comment.

Lying to regulators is not the best way to run one’s business, and it will probably end up in court. There are also numerous other issues in the business world that you might end up in court for. If you are in need of business-related legal help, do not go through your hardships alone. Get qualified legal assistance on your side, and contact our business lawyers in Naperville, Illinois today.