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Jan 23, 2009 9:21 pm US/Central
Petters, 2 Associates Accused Of Hiding Assets
MINNEAPOLIS (AP) ―
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Tom Petters says he's innocent in the alleged fraud scheme.
Sherburne County Jail
Businessman Tom Petters and two associates who pleaded guilty in an alleged $3 billion fraud scheme are now accused of hiding or diverting assets that are supposed to be frozen.
According to documents filed Thursday in federal court, receiver Doug Kelley said Petters diverted $50,000 from a lodge in Wisconsin to make payments to himself and others.
Kelley said Petters' associate Michael Catain took nearly $14,000 in proceeds from a car wash he owned, and that several items were removed from Catain's home. Some items have been returned.
Kelley said Deanna Coleman tried to keep $800 season tickets for the Timberwolves, plus cashier's checks totaling $88,000. Coleman has turned over the tickets, and agreed to turn over a diamond pendant and other items. Coleman said she forgot to list the items as assets.
Petters' attorneys said Friday that the money was removed from the lodge's bank account before there was a restraining order, and that there was no attempt to hide the transactions.
"The money went to support two innocent children, ages 1 and 3, whose mother is without support, and whose house the receiver is sadly selling out from under her," defense attorney Jon Hopeman said in a statement.
Prosecutors filed a motion Friday to sent Catain back to jail for violating the terms of his release. A hearing is set for Wednesday.
His attorney, Michael Colich, said Catain is aware he acted "inappropriately" and that they'll ask that he not be detained.
The government took no action Friday against Coleman, who first alerted authorities to Petters' alleged scheme. Her attorney, Allen Caplan, said her failure to turn the items over to Kelley was an oversight that they have rectified.
Petters says he's innocent. Prosecutors are fighting his latest effort to be released from jail pending trial.
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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 This material may not be published, broadcast, rewritten, or redistributed.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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