Iowa Dept. of Revenue: Wasendorf, Ex-Wife, Owe Over $14 Million in Taxes, Fines

As if charges of embezzling over $200 million weren't enough, authorities have now accused Russell Wasendorf Sr. with owing over $14 million in taxes and fines.

Wasendorf, 64, was arrested in July after attempting suicide. In his suicide note he allegedly admitted to falsifying bank documents and embezzling over $200 million over 20 years. His Cedar Falls-based international brokerage firm, Peregrine Financial Group, is in bankruptcy.

Now, the Associated Press reports the Iowa Department of Revenue has filed an assessment against Wasendorf and his ex-wife Connie Wasendorf, alleging they under-reported their taxable income by about $75 million between 2001 and 2009.

By doing so, they allegedly underpaid $6.6 million in taxes. With fines and interest, authorities say the former couple now owes $14.1 million.

The two divorced in 2010. Russell Wasendorf re-married Nancy Paladino just weeks before his arrest, but she has since asked for an annulment. Wasendorf remains in custody in Cedar Rapids while awaiting trial.

Whether the government will see any of the allegedly missing taxes remains to be seen.

Wasendorf's assets are currently being liquidated to reimburse his alleged victims. On Friday, U.S. District Judge Rebecca Pallmeyer granted a request to freeze any efforts by the revenue department to collect the taxes, the Associated Press reported. A general freeze on legal claims to Wasendorf's assets was previously enacted in order to prevent a flood of litigation against the businessman.