From the WSJ: The Wall Street Journal's Michael Rothfeld and
Jacob Bunge report that Russ Wasendorf Sr., the CEO of collapsed Chicago-based
futures brokerage Peregrine Financial who attempted suicide once regulators
caught wind of his alleged accounting fraud, spent of most of the $200 million
missing from PFG customer accounts.
"Most of the
misappropriated funds went to maintain the increasing levels of Regulatory
Capital to keep [Peregrine] in business and to pay business [losses],"
said the signed suicide letter, which was reviewed by The Wall Street Journal.
Rothfeld and Bunge write that Wasendorf says "mean
spirited" regulators led him to commit fraud. .
"I have to say I don't feel bad about deceiving the
regulators," the note said. "They made the decision to be my
enemy."
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