Russell Wasendorf Sr., the founder and CEO of failed futures brokerage PFGBest, faces "up to decades in prison" after being accused of a massive fraud, Assistant U.S. Attorney Peter Deegan said on Friday.

Wasendorf, 64, made his initial appearance in court in Cedar Rapids, Iowa, hours after being arrested by FBI agents at an Iowa City Hospital for lying to regulators. He entered no plea.

Deegan said the government expected to seek additional charges.

PFGBest filed for bankruptcy protection on Tuesday, and the Commodity Futures Trading Commission and the National Futures Association have accused the firm and Wasendorf of misappropriating more than $200 million in customer funds.

Wasendorf has admitted to tricking regulators with forge bank statements for nearly 20 years, according to a federal complaint unsealed Friday.