CEDAR FALLS, Iowa — Russell Wasendorf, the founder and CEO of failed trader Peregrine Financial Group, has been arrested, CNBC has learned.
He has been charged with making false statements to the Commodity Futures Trading Commission relating to the value of customer segregated funds at PFG beginning back in 2010 and continuing until July 2012.
"I have committed fraud," Wasendorf said in a signed statement, according to the criminal compliant. Wasendorf also said he forged bank statements for 20 years.
Wasendorf said in his statement he turned to fraud because he had no access to needed capital.
Wasendorf is expected to appear in federal court in Cedar Rapids, Iowa at 4pm Central Time.