Russell Wasendorf of Peregrine Financial was indicted last week on 31 counts of lying to regulators and robbing his firm’s clients of about $200 million.
Wasendorf, who plead “not guilty” to the charges, faces up to 155 years in jail.
Meanwhile, The New York Times reports NO charges are likely against Jon Corzine or other senior execs of MF Global — where $1.6 billion of customer funds remain missing nearly a year after the futures brokers filed for bankruptcy.
Which brings us back to a segment we call Taken to Task.
Look, I get that proving a crime is tough, but when the guy accused of stealing $200 Million goes to jail and the guy who can’t account for $1.6 Billion is likely to get off scott free, something is very wrong.
In case you didn’t know, Jon Corzine is a former CEO of Goldman Sachs, a former Senator and Governor of New Jersey and a former major fundraiser for President Obama. It’s really hard to be more “high-powered” and “connected” in American society.
To be sure, Wasendorf essentially confessed to how he stole customer funds in what was supposed to have been a suicide note while Corzine has denied any wrongdoing and MF Global’s bookkeeper, Edith O’Brien, has plead the fifth.
Still, I’d like to take the Obama Administration, the Department of Justice and the Commodities Futures Trading Commission to Task for not either finding the missing money at MF Global or turning up the heat on the head of the ill-fated firm.
I mean, is it really possible to be unable to account for $1.6 BILLION of customer fund without breaking rules that compel brokerage firms to keep customer funds segregated (and safe)?
The lesson here: If you’re going to blow up the firm, go BIG!
Read here:
If you enjoy the content at iBankCoin, please follow us on Twitter
