• Font Size    

Today's Most Popular Video

Truckers Sue For Unauthorized Citations
E-mail

Close Window E-mail This Page

Affidavit: Petters' Fraud Funds Paid For Polaroid

Required fields are marked with an asterisk(*)

The information you provide will be used only to send the requested e-mail and will not be used to send any other e-mail communications. Read more in our Privacy Policy

Send E-mail

   Print     Share +   
Apr 14, 2009 8:47 am US/Central

Affidavit: Petters' Fraud Funds Paid For Polaroid

MINNEAPOLIS (AP) ― An affidavit filed in U.S. District Court alleges that businessman Tom Petters purchased Polaroid Corp. in 2005 with money he obtained through fraud.

Concord Mass.-based Polaroid is being sold through auction in bankruptcy court. In an affidavit, trustee Doug Kelley says government officials told him Petters bought Polaroid with $426 million in fraudulent funds.

The affidavit by trustee Doug Kelley was filed Monday.

Petters is the founder of Petters Group Worldwide. He has pleaded not guilty to running a fraudulent scheme through Petters Co. Inc., the financing arm of his company. The scheme allegedly bilked investors out of more than $3 billion.

Kelley says the forensic accountants he hired have determined that "virtually every dollar" used in the Polaroid purchase came from PCI's investors.

Information from: Star Tribune, http://www.startribune.com

-------

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 This material may not be published, broadcast, rewritten, or redistributed.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

© MMIX, CBS Broadcasting Inc. All Rights Reserved.