CEDAR RAPIDS, Iowa (AP) — A judge sentenced PeregrineFinancial Group Inc. founder Russ
Wasendorf Sr. to 50 years in prison onThursday for stealing $215 million from investors and concealing
histheft for 20 years.U.S. District Judge Linda Reade told Wasendorfat the hearing in Cedar Rapids that
he knowingly caused "staggeringlosses" to investors, employees and creditors that grew larger
over 20years.Reade said Wasendorf, 64, lacked the courage to stop hisfraud sooner and admit his company
was a failure from its inception inthe early 1990s.She also said the collapse of Peregrine
FinancialGroup had rippled across the financial industry, affecting regulatoryagencies and the nation as
whole."By imposing a substantialsentence, the court sends a message that white collar criminals
mayserve long prison sentences for stealing money from other people," Readesaid.Wasendorf appeared
frail at the sentencing. His attorney said he’d lost a substantial amount of weight while being held in
jail.Before the sentencing, Wasendorf issued a broad apology for the damage he caused and said he would
accept any sentence imposed.Wasendorfpleaded guilty in September to misusing at least $100 million to
coverbusiness losses at his Cedar Falls-based brokerage, which did businessas PFGBest, and a range of
personal expenses. He admitted that he hidthe theft from colleagues and regulators by making phony
financialstatements for nearly two decades.Wasendorf was found unconsciousoutside the company’s
headquarters last July after attempting suicidein his vehicle by connecting a tube to his exhaust pipe.
He left astartling suicide note confessing to the fraud, saying he startedstealing because his "ego
was too big to fail," that he did not feel badabout duping regulators he felt were overzealous, and
had learned tomake "convincing forgeries" of bank and financial statements usingprinters and
scanners.Regulators immediately discovered PFGBestcould not account for more than $200 million in
customer funds it wassupposed to be holding, and the firm filed for bankruptcy protection.Some 24,000
customers were unable to access their accounts and stillhave not been fully reimbursed. Customers who
opened accounts to tradecommodities have received between 30 and 40 percent of their money back,while
customers who traded foreign currency have received nothingbecause that activity has less legal
protection.Wasendorf usedtheir money to build up a business empire that included a publishingcompany, a
corporate jet, the nicest restaurant in Cedar Falls, and afamily charity known for making donations to
universities and hospitals.Customermoney also helped build what was perhaps the biggest symbol
ofWasendorf’s home-grown success with a firm he started in a basement 30years ago: PFG’s $20 million
headquarters, a three-story glass buildingthat opened in 2009 and included a gym, a daycare center, a
Montessorischool, and a restaurant. Today, the building is largely empty and upfor sale.Copyright 2013
The Associated Press.