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| Mr Wasendorf was once a well-respected figure in his community but now faces years in jail |
The founder
of US futures broker Peregrine Financial Group has pleaded guilty to a fraud
involving 24,000 customers in the US state of Iowa.
The
embezzlement, totalling over $100m (£61.5m), began some 20 years ago.
Russell
Wasendorf Sr, who is 64, was once regarded as a noble figure who supported a
range of institutions from health care to universities.
He now
faces at least 24 years in jail. Prosecutors said: "He has gone from being
a hero... to a villain."
In court,
Wasendorf pleaded guilty to charges including mail fraud, embezzling customer
funds and making false statements to two regulatory agencies.
Assets sold
In July he
attempted suicide, writing a note that was found on his person confessing to
the fraud.
The company
he built up over 30 years is being dismantled by receivers who will attempt to
refund some of the money taken from the 24,000-strong customer base.
Assets
recently sold include a corporate jet and a publishing company which produced
Wasendorf's books and magazines giving investment advice.
The
receiver is also hoping to raise money from various properties including a
restaurant, company headquarters that could be worth $20m and a 4,000-bottle
wine collection.
Peregrine's
customers invested mainly in commodities, including corn and gold.
They have
not been able to access their accounts since the firm filed for bankruptcy in
July but are expected to gain back an initial 30-40% of their investment in the
coming weeks.
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