Thursday, April 8, 2010
Update: Petters Gets 50 Years For $3.65 billion Ponzi Scheme
Thomas "Tom" J. Petters, 52, of Wayzata, Minnesota, was sentenced to 50 years in prison for running a $3.65 billion Ponzi-type investment fraud scheme, one of the largest ever. Petters was convicted last December on all 20 criminal counts that he faced, including wire fraud, mail fraud and money laundering. The fraud and conspiracy case involved Minnetonka-based Petters Group Worldwide, LLC, his primary holding company, and Petters Company Inc., the investment arm of the group. Petters and his co-conspirators bilked investors who thought their investment money was being using to buy consumer electronics for resale to retailers such as BJ's Wholesale Club and Costco. Several other executives of the company, including Deanna Coleman, Robert White, Michael Catain and Larry Reynolds, who have all previously pleaded guilty in the case.