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Economy
In reply to the discussion: Weekend Economists Ride With Sally into the Sunset July 27-29, 2012 [View all]Demeter
(85,373 posts)32. Trading Firm CEO: I Spent It
http://online.wsj.com/article/SB10001424052702303754904577533121162497112.html
Peregrine Financial Group Inc.'s founder said he spent most of the money allegedly embezzled from customers to cushion his trading firm's capital, fund a new corporate headquartersand even to pay regulatory fines and fees, according to previously undisclosed parts of letters left when he attempted suicide...One of the notes, which was a general statement describing Mr. Wasendorf's alleged fraud and signed by him, says regulators first examined Peregrine's use of client funds as far back as 1993, triggering Mr. Wasendorf to start his alleged fraud. Deceiving the regulators was "relatively simple," said the statement.
...Mr. Wasendorf's failed suicide attempt last week triggered probes by regulators and the Federal Bureau of Investigation that uncovered $215 million in allegedly missing customer funds. Mr. Wasendorf was arrested and criminally charged Friday with lying to regulators. The Commodity Futures Trading Commission and the National Futures Association have filed separate enforcement actions against him and Peregrine, which is now in liquidation.
...Portions of Mr. Wasendorf's signed statement were contained in a criminal complaint unsealed in federal court Friday. The remainder of the statementas well as the contents of a separate note to his son, Russell Wasendorf Jr.haven't previously been reported. That note asked for the son's forgiveness, and informed him that Mr. Wasendorf already had married his fiancée in secret, weeks before a scheduled wedding in Iowa. Mr. Wasendorf also left a note for his wife, according to federal authorities.
"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 statement. It said the funds also were used to build Peregrine's $18 million headquarters in Cedar Falls, Iowa, and to "pay Fines and Fees charged by the regulators."
Peregrine Financial Group Inc.'s founder said he spent most of the money allegedly embezzled from customers to cushion his trading firm's capital, fund a new corporate headquartersand even to pay regulatory fines and fees, according to previously undisclosed parts of letters left when he attempted suicide...One of the notes, which was a general statement describing Mr. Wasendorf's alleged fraud and signed by him, says regulators first examined Peregrine's use of client funds as far back as 1993, triggering Mr. Wasendorf to start his alleged fraud. Deceiving the regulators was "relatively simple," said the statement.
...Mr. Wasendorf's failed suicide attempt last week triggered probes by regulators and the Federal Bureau of Investigation that uncovered $215 million in allegedly missing customer funds. Mr. Wasendorf was arrested and criminally charged Friday with lying to regulators. The Commodity Futures Trading Commission and the National Futures Association have filed separate enforcement actions against him and Peregrine, which is now in liquidation.
...Portions of Mr. Wasendorf's signed statement were contained in a criminal complaint unsealed in federal court Friday. The remainder of the statementas well as the contents of a separate note to his son, Russell Wasendorf Jr.haven't previously been reported. That note asked for the son's forgiveness, and informed him that Mr. Wasendorf already had married his fiancée in secret, weeks before a scheduled wedding in Iowa. Mr. Wasendorf also left a note for his wife, according to federal authorities.
"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 statement. It said the funds also were used to build Peregrine's $18 million headquarters in Cedar Falls, Iowa, and to "pay Fines and Fees charged by the regulators."
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Countrywide Investigator Fired for Doing Her Job While Rampant Fraud Was Concealed
Demeter
Jul 2012
#23
i did -- it was wonderful -- and i love burt lancaster... we love ya hotler -- Peace be with you
xchrom
Jul 2012
#54
But wait, Mayors now can dictate how and what we feed our babies. We are saved! n/t
kickysnana
Jul 2012
#77