IOWA CITY, Iowa (AP) — The disgraced founder of an Iowa-based brokerage jailed in a suspected $200 million fraud scheme has decided not to challenge his detention — for now.
Peregrine Financial Group CEO Russ Wasendorf Sr. filed a motion Thursday asking to cancel a detention hearing that had been scheduled for Friday in Cedar Rapids. A judge granted the request.
Wasendorf's attorney says her client may request a detention hearing at a later date to determine whether he can be released pending trial, and, if so, under what conditions.
Wasendorf has been jailed since he was arrested July 13 and charged with lying to regulators, who say more than $200 million in customer money is missing. Investigators say he left a suicide note in which he confessed to a 20-year embezzlement and fraud scheme.