Wasendorf to be freed on bail after guilty plea

Feds protest bail decision

Not Suicidal

Livingston testified on Wasendorf’s behalf at the Sept. 11 hearing, telling the court the Peregrine chairman and chief executive officer was no longer suicidal and “glad to be alive,” Scoles said.

The court released several documents entered into evidence at the bail hearing, including notes Wasendorf had written to his son, Russell Wasendorf Jr., and new wife, Nancy Paladino, before trying to kill himself by asphyxiation in his car outside company headquarters.

“To my wonderful son, Russ,” Wasendorf wrote, “by the time you read this I will have taken my life. I beg for your forgiveness. I have written my final confession that will be discovered with my body. I know you will be shocked to discover my crimes.”

“I never wanted you to know the kind of guy I really was,” he said. “Your mistake was that you trusted your father. Nothing more.”

‘Forgive Me’

To Paladino, he said, “Please forgive me for typing this letter. My hands are shaking so much I cannot write. I love you so much and I so wanted to spend my final years growing old with you. I am so sorry that this will not happen.”

Paladino has filed for an annulment of their June 30 marriage in Nevada state court in Las Vegas.

Livingston testified that Paladino is still committed to Wasendorf and that the annulment petition was filed to insulate her from financial liability for crimes of which she was unaware, according to Scoles’s ruling.

In agreeing to release Wasendorf before he is sentenced, Scoles cited Livingston’s testimony as well as the confiscation of Wasendorf’s assets in a lawsuit filed against him by the U.S. Commodity Futures Trading Commission.

“Defendant’s actions, which he has admitted, are reprehensible,” Scoles wrote. “Thousands of PFG customers have lost millions of dollars as a result of defendant’s criminal activity. But the issue before me at this time is not one of punishment.”

“The court cannot detain a defendant prior to trial simply because it thinks it’s appropriate to do so,” according to the magistrate.

The case is U.S. v. Wasendorf, 12-cr-2012, U.S. District Court, Northern District of Iowa (Cedar Rapids).

Bloomberg News

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