by Madeleine Baran, Minnesota Public Radio
MPR | December 1st, 2009
Link to article
St. Paul, Minn. — A Florida investment company has filed for bankruptcy protection, stating it lost more than $1 billion in the Ponzi scheme allegedly led by Minnesota businessman Tom Petters.
Palm Beach Finance Partners says it invested “substantial amounts of monies” with the Petters Company, Inc, in Chapter 11 papers filed Monday in U.S. Bankruptcy Court in West Palm Beach, Florida.
The filing comes as jurors continued to deliberate in the Petters fraud trial. Petters has been accused of running a massive Ponzi scheme that cost investors more than $3.5 billion. He has been charged with 20 counts of wire fraud, mail fraud, conspiracy and money laundering.
Petters claims other defendants carried out the fraud without his knowledge, then testified against him in hopes of lighter sentences.
The jury reconvenes Tuesday in federal court in St. Paul.
(The Associated Press contributed to this report.)