PFG's Wasendorf Pleads Guilty But Not Getting Released from Jail, At Least Not Yet

Russell Wasendorf Sr., the CEO of Peregrine Financial Group, will not be released from jail as he had hoped, at least not yet.

Wasendorf pleaded guilty Monday to four charges relating to lying to authorities and embezzling over $200 million from his company's bank account. He was charged on 31 counts.

U.S. Magistrate Jon Scoles ruled last week Wasendorf could be released to the Marion home of Pastor Linda Livingston while awaiting sentencing. On Monday, however, U.S. District Chief Judge Linda Reade partially granted prosecutors' appeal of his release, pending further ruling from the court, KCRG reported.

So, Wasendorf will stay in jail, for now.

Wasendorf was arrested after attempting suicide outside PFG's Cedar Falls headquarters in July. The appeal used both his suicide attempt and the unknown location of the missing millions, as well as some of PFG's international interests, to argue Wasendorf should not be released.

KCRG wrote:

Wasendorf has foreign ties throughout Europe and has business interests in Romania, according to the appeal. The value of those assets in Romania are uncertain but they could be tens of millions of dollars. Many of the known assets have been seized or restrained but there could be other unknown assets...

The government has proven $200 million is missing and Wasendorf is the only person to know where the money went, according to the appeal. If only a small portion is hidden away, it could be an incentive and means for him to flee a probable life sentence.