Federal criminal charges were filed against him under seal two days later. He was arrested July 13.
"I have committed fraud. For this I feel constant and intense guilt," Wasendorf said in the confession, which he confirmed he had written, according to an affidavit by FBI agent William F. Langdon filed with the criminal complaint.
False Statements
"Through a scheme of using false bank statements I have been able to embezzle millions of dollars from customer accounts at Peregrine Financial Group Inc.," Wasendorf said.
His 17-page plea agreement with prosecutors was signed on Sept. 7 and made public at a bail hearing on Sept. 11.
Wasendorf was indicted last month on 31 counts of lying to the U.S. Commodity Futures Trading Commission about how much money the firm had in client accounts from 2010 through June of 2012. He pleaded not guilty on Aug. 17.
On Sept. 13 Scoles granted the CEO's request to be freed on bail after the entry of his guilty plea yesterday. Rejecting prosecutors' claims he might still try to commit suicide or flee, the judge said Wasendorf could be released into the custody of friend and pastor Linda Livingston, who had vouched for him at the Sept. 11 hearing. Livingston was in the courtroom yesterday for the plea.
Wasendorf also would have been required to wear an electronic monitoring device.
'Serious Risk'
Deegan filed a motion hours before the plea hearing yesterday requesting Wasendorf remain in custody, and Reade agreed.
"There is at least a 'serious risk' defendant might choose to flee rather than face the consequences of his offenses," Deegan wrote in his motion.
"The court is faced with the perpetrator of one of the most lengthy and egregious frauds in the history of this district," Deegan wrote.