Peregrine Financial CEO Wasendorf Won't Be Leaving Jail Anytime Soon

Russell Wasendorf Sr., who pleaded guilty to embezzling over $200 million and lying to authorities, will not be released pending sentencing as his lawyer had hoped.

Wasendorf, the founder of Cedar Falls-based brokerage firm Peregrine Financial Group, also known as PFG, was to be released to the custody of a pastor in Marion. However, prosecutors challenged the decision, and U.S. District Judge Linda Reade agreed his lawyer failed to prove he wasn't a flight risk, the Cedar Rapids Gazette reported.

Wasendorf's alleged fraud was discovered when he attempted suicide outside the PFG headquarters in July. PFG has since gone into bankruptcy.