Dec 15, 2008 9:23 pm US/Central
6th Defendant Charged In Petters Case
MINNEAPOLIS (AP) ―
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The U.S. attorney's office on Monday charged James Wehmhoff, Petter's former chief accountant, with conspiracy to defraud the United States and with aiding and assisting in the filing of false tax returns. (File)
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A sixth person has been charged in the investment fraud case involving Minnesota businessman Tom Petters.
The U.S. attorney's office on Monday charged James Wehmhoff, Petter's former chief accountant, with conspiracy to defraud the United States and with aiding and assisting in the filing of false tax returns.
According to the charging document, Wehmhoff worked for Petters from July 2004 to Sept 2008, when prosecutors uncovered the alleged $3 billion Ponzi scheme.
It alleges that Wehmhoff falsely characterized millions of dollars of payments made to Petters or on his behalf as "loans" to him, allowing him to avoid a hefty tax bill in 2005. It also alleges Wehmhoff falsely characterized millions of dollars paid to Petters' employees as gifts instead of as taxable income.
Four other defendants have already pleaded guilty. Petters has pleaded not guilty and remains in jail.
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Items federal agents seized at Tom Petters' Wayzata home in the fall of
2008 included $13,000 in cash, numerous credit cards, a .22 caliber
revolver and 11 high-end watches, including four Rolexes.
(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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