Oct 15, 2008 6:28 pm US/Central
Petters' Attorney: 'There's Been Rush To Judgment'
MINNEAPOLIS (AP) ―
-
-
Tom Petters, 51, the founder of Petters Group Worldwide is charged with fraud in an alleged multimillion-dollar investment scheme that prosecutors say spanned 14 years.
Sherburne County Jail
The attorney representing businessman Tom Petters said Wednesday that there's been a rush to judgment against his client, and that so far, the information he's seen about a purported $3 billion fraud scheme contains nothing but allegations.
"At this point, we have not seen any evidence at all," said Jon Hopeman, an attorney for the founder of Petters Group Worldwide.
Petters, 51, faces federal charges of mail fraud, wire fraud, money laundering and obstruction of justice, but he has not yet been indicted by a grand jury.
If an indictment is returned, then Hopeman would have access to the government's evidence and information about witnesses in the case. Hopeman said it would likely be at least a year before the case goes to trial.
"He is not guilty," Hopeman said of Petters. "He intends to fight the charges against him."
The U.S. Attorney's Office did not immediately return a phone call seeking comment Wednesday. But in court documents, authorities say Petters and his associates created false retail transactions to bilk investors out of at least $3 billion.
The defendants allegedly created fake documents detailing the purchase of merchandise from small vendors and the resale of that same merchandise to larger retailers. The transactions never happened, and the investors' money went toward Petters' business ventures and his "extravagant lifestyle," documents said.
Since news of the accusations broke, Petters Group Worldwide, Petters Co. Inc., and Sun Country Airlines have all filed for Chapter 11 bankruptcy protection. About 50 Petters Group employees have been laid off. Several investors have filed lawsuits, claiming they lost millions to the scheme. Petters' business and personal assets have been frozen and placed in receivership.
News stories about Petters or one of his companies have been printed or aired nearly every day since federal authorities conducted raids on Sept. 24. The case has generated public interest, partly because of the amount of money allegedly involved, because of Petters' own vibrant personality, and because of the intrigue of a man who fell from a board room to a jail cell, Hopeman said.
"It's a spectacular fall from grace," Hopeman said.
Because of that, Hopeman said, his client has been unfairly judged in the press and by the public. That's been hard on Petters' family, Hopeman said.
"Mr. Petters is not Osama bin Laden and I think there's been a massive rush to judgment," Hopeman said.
Petters remains in custody in the Sherburne County Jail. Hopeman said he is doing fine and maintaining a positive attitude, even though he is concerned about his family and his employees.
For now, Hopeman said, all he and Petters can do is wait -- and for a take-action kind of guy like Petters, "that's a hard thing to do."
-------
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.)
Click to enlarge
Stumble It!
