Failed Cedar Falls brokerage's CEO moved to Indiana federal prison

Wasendorf had been in Linn County Jail since July

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March 28, 2014 | 12:08 pm

A former Iowa investment broker convicted of orchestrating a $200 million fraud scandal has been moved to a high-security federal prison in Indiana, where he is scheduled to serve a lengthy sentence.

Russell Wasendorf Sr. was transferred Wednesday to the U.S. Penitentiary in Terre Haute via a direct flight, the Waterloo-Cedar Falls Courier reported Friday. His release date is scheduled for Feb. 2, 2056.

Wasendorf was sent with other prisoners bound for the penitentiary, said Bill Kiesau, supervisory deputy with the U.S. Marshal Service for the Northern District of Iowa in Cedar Rapids. The flight arrived in Indiana on schedule despite a snowstorm in the region, he said.

"They didn't have any problems getting in and out. He arrived there," Kiesau said.

The U.S. Penitentiary in Terre Haute is a high security facility that houses male inmates, including those serving federal death sentences. The newspaper reported Wasendorf will be identified in the federal prison system as Inmate No. 12191-029.

Wasendorf has been in the Linn County Jail in Cedar Rapids since he was arrested in July, following a suicide attempt. He admitted in a note that he misspent investor funds over a 20-year period at his former Cedar Falls-based brokerage, Peregrine Financial Group Inc.

Wasendorf pleaded guilty in September to charges including embezzlement of customer funds and mail fraud. He was sentenced in January to 50 years in federal prison.

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