Minneapolis (KROC AM News) – The final court order was made in a Ponzi scheme staged by a well-known Minnesotan that was one of the largest and most sophisticated in US history.
Businessman Thomas Petters was convicted of 20 postal fraud, wire transfer fraud, money laundering and conspiracy charges for orchestrating the $ 1.9 billion fraud in 2009. Petters is currently serving a 50-year prison sentence.
Photo from Sherburne County Jail
According to Wikipedia:
Petters Group Worldwide was an American diversified company based in Minnetonka, Minnesota that was converted into a $ 3.65 billion Ponzi program by its founder and CEO Tom Petters. It had 3,200 employees and interests in or wholly owned 60 companies, of which it actively managed 20, with offices in North America, South America, Asia and Europe. His assets included Sun Country Airlines, Petters Warehouse Direct, and the remains of Polaroid. Petters Group Worldwide had 2007 sales of US $ 2.3 billion.
LAS VEGAS – OCTOBER 15: Tom Petters (L), founder and chairman of Petters Group Worldwide, and actress Kathy Griffin speak at the launch of the “uBid for Hurricane Relief” charity auction and benefit at the Empire Ballroom October 15, 2005 in Las Vegas, Nevada. The proceeds of the auction will be split equally between the Brett Favre Fourward Foundation, the RockWorks Foundation and the Child Welfare League of America. The organizations will use the money raised to help the areas devastated by Hurricane Katrina and Hurricane Rita on the Gulf Coast. The online portion of the auction will run on uBid.com through November 1, 2005. (Photo by Ethan Miller / Getty Images)
The federal government opened its case against Petters in 2008 and froze all of his assets and those of other defendants.
Prosecutors said, “Petters and the other defendants had created a vast web of more than 150 entities over the course of thirteen years – entities all backed by fraud. However, some of the companies were legitimate companies employing innocent people. ”These included Sun Country Airlines and Polaroid Corporation.
A judge appointed a bankruptcy administrator who essentially took control of the property and administered it until the case was resolved.
On Friday, US judge Ann. Montgomery issued an order to close the receivership that resulted in more than $ 722 million in distribution to victims and creditors.
News Update: Rochester Police Released Information About Sex Offenders.