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Oct 31, 2008 5:48 pm US/Central
Petters Will Stay In Jail, Not House Arrest
ST. PAUL (WCCO) ―
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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. (File)
Sherburne County Jail
Wayzata businessman Tom Petters will remain in prison for now, a judge reaffirmed Friday. Earlier this month, U.S. Magistrate Judge Jeffrey Keyes ordered Petters remain in custody until his trial.
Petters listened in federal court for three and half hours Friday as his girlfriend, his former lawyer and an FBI agent testified. He is accused of defrauding investors out of billions of dollars.
He's been in jail since his arrest on Oct. 3 because prosecutors think he's a flight risk. Friday, they replayed a recorded phone conversation between Petters and a former business associate in which Petters discussed leaving the country.
Petters' attorney, Jon Hopeman, said the case "came down to the one stupid, irrational, somewhat drunken phone call." Petters' girlfriend, Tracy Mixon, testified she thought Petters was under the influence of prescription drugs and alcohol during the call.
Prosecutors said Petters was "not a half-hazed drunk speculating" but rather someone "seriously contemplating leaving the district." U.S. Assistant Attorney John Marti also brought up a 1989 dismissed case where Petters was charged with theft in Colorado. He alleged Petters tried to escape those charges by leaving Colorado for Minnesota. Steve Meshbesher, Petters attorney at the time, said his client wasn't trying to flee.
"That's fabrication. There's not basis for that, absolutely not. That's the first time I've heard of that," said Meshbesher. Meshbesher also said the theft case was not a crime, but rather a dispute with another businessman.
Hopeman argued Petters could remain confined to his Wayzata home with a GPS bracelet and no access to the internet or cell phone. Ultimately, the judge said that plan "had too many holes."
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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