Like Jon Corzine, another con artist loses a big bet.
Here is the scoop:
Russell Wasendorf Sr., the sole owner and chairman of stricken futures broker Peregrine Financial Group, Inc., intercepted and forged bank documents for more than two years to cover up hundreds of millions of dollars in missing money, a person close to the situation told Reuters.
The National Futures Association on Monday froze the funds of the Iowa-based brokerage, which does business as PFGBest, after discovering an estimated $220 million shortfall in PFGBest's customer accounts. The NFA had said in an affidavit that Wasendorf "may have falsified bank records."
Wasendorf, 64, is reported to be in a coma after a suicide attempt Monday morning, according to a complaint filed by the Commodity Futures Trading Commission on Tuesday that accuses Wasendorf and Peregrine of fraud.
What's $220 missing millions between friends?
The victims, once again, will include American farmers who use such brokers to hedge the potential cost of volatility in commodities prices.
Unlike Jon Cozine, Wasendorf doesn't seem politically connected enough to evade prosecution. I'm gonna bet that the regulators and the Feds go after him big time.