[ by Melanie Gretchen ] Peregrine Financial Group's former CEO entered a "not guilty" plea Friday, to the charge of lying to federal regulators.  Russell Wasendorf Sr., who faces 31 counts of deceiving regulators about the value of his customers' accounts, would face a maximum prison sentence of 155 years if convicted on all counts.

[C-I Note: It tells you something about the U.S. Justice system, that it's possible for a defendant like Mr. Wasendorf to be sentenced to a term that's longer than the 150 years Bernie Madoff is currently serving. It's due time, perhaps, for Mr. Wasendorf to become more serious about the case.  He's up to his neck in alligators.  Also, there's nothing honorable about receiving the longest sentence - it is not the kind of record you'd want to set.]

Last month the fallen CEO wrote a note confessing embezzling more than $100 million from clients and defrauding the firm's banks.  This was discovered next to his unconscious body in his car after a suicide attempt.  Since then, authorities arrested him, and regulators discovered a customer fund shortfall at Peregrine of at least $200 million. It's a significant fall for this prominent figure in the futures markets.  Among other things, he had served on an advisory committee at the National Futures Association (NFA) and he's a significant businessman in his hometown of Cedar Falls, IA, where he invested some $18 million (whose money?) on his firm's new headquarters in Cedar Falls.

[C-I Note: Will prosecutors go ahead with additional charges, as expected?  Will Wasendorf reach a plea agreement by helping with the investigation, including tracking down missing customer money?  Will the former senior executive's son, who serves as president of Peregrine, also known as PFGBest, face scrutiny, as well?]

For further details, go to [Dealbook, 8/17/12].