In closing arguments at the Tom Petters trial Monday, prosecutors emphasized Petters’ leadership role in a Ponzi scheme that defrauded investors of $3.5 billion, while the defense portrayed him as a victim of con artists.
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Assistant U.S. Attorney Joe Dixon began his cross examination of Tom Petters Thursday morning, grilling Petters about his claim that he knew nothing of the fraud at Petters Co. Inc. (PCI), a company he owned and led as CEO.
Tom Petters testified on Wednesday afternoon that he was largely removed from Petters Co. Inc.’s operations, trusting executives Deanna Coleman and Bob White to run the business while he focused on other ventures and charitable giving.
Tom Petters took the stand in his own defense Tuesday afternoon, apologizing to defrauded victims, but asserting he’s innocent of charges that he orchestrated a multibillion-dollar Ponzi scheme.
Twin Cities financier Irwin Jacobs, testifying Friday in the Tom Petters fraud trial in U.S. District Court in St. Paul, said that Petters had approached him about supplying falsified invoices that overvalued goods Petters was buying.
Tom Petters boasted of close ties to a Costco official when attempting to lure investors, a Chicago hedge fund manager who pumped $1.5 billion into Petters Co. Inc. testified in Petters’ trial on Thursday afternoon.
Tom Petters was described as a “swashbuckling industrialist” who always seemed to be late with debt payments, according to testimony Thursday in the fraud trial of the Minneapolis businessman.
In tape recordings made in the weeks before a multibillion-dollar fraud scheme crumbled, Tom Petters told colleagues he was “scared to death.”
But days after federal agents raided Petters’ offices, an investor taken in by that scheme testified that Petters seemed “very relaxed” and confident that all would be well.
Larry Reynolds, a Los Angeles man who has pleaded guilty to charges in connection with the Tom Petters fraud case, testified Monday that he laundered about $12 billion through his bank account to support Petters’ alleged multibillion dollar Ponzi scheme.
Tom Petters defrauded a Twin Cities investment firm in 1996, lying to Data Sales Co. Inc. officials about his plans to use their funds to buy electronics from 3M Co. and resell the goods to retailers, according to testimony at Petters’ trial Friday afternoon.