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4th Guilty Plea Entered In Petters Case

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Oct 23, 2008 3:08 pm US/Central

4th Guilty Plea Entered In Petters Case

MINNEAPOLIS (AP) ― A Las Vegas man has become the fourth person to plead guilty in an investment fraud scheme that authorities say was masterminded by Minnesota businessman Tom Petters.

Larry Reynolds said in federal court Thursday that he laundered money by setting up a bank account at his Los Angeles firm, Nation Wide International Resources.

Reynolds said the account was used to fool investors into thinking that the money moving through it was being used to buy high-end electronics that would later be sold for a profit. He said about $12 billion was moved through the account to Petters, minus a commission for Reynolds.

The 65-year-old Reynolds pleaded guilty to money-laundering conspiracy.

Authorities say Petters essentially ran a large Ponzi scheme for more than a decade. Petters' attorney has said his client is not guilty.

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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 This material may not be published, broadcast, rewritten, or redistributed.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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