07-13-2012, 01:44 PM
CEDAR FALLS, Iowa — Russell Wasendorf, the founder and CEO of failed trader Peregrine Financial Group, has been arrested, CNBC has learned.
He has been charged with making false statements to the Commodity Futures Trading Commission beginning back in 2010 and continuing until July 2012.
The false statements relate to the value of customer segregated funds held by PFG.
Wasendorf is expected to appear in federal court in Cedar Rapids, Iowa at 4pm Central Time.
PFG filed for bankruptcy on Tuesday, and regulators say some $200 million in customer funds are unaccounted for.
One day earlier, Wasendorf — a 40-year futures industry veteran — attempted suicide in his car outside PFG's Cedar Falls, Iowa headquarters.
An apparent suicide note found in the vehicle indicated possible accounting discrepancies at the firm, according to a police report.