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Other Side Of Tom Petters: Generosity To Charities

(WCCO) Tom Petters, former CEO of Petters Group Worldwide, will remain in jail while he's facing fraud and corruption charges. Before the recent allegations, Frank Vascellaro was trying to put together a profile on Petters for the news.

On three occasions, he had interview dates set up, but Petters cancelled each time. Vascellaro eventually gave up trying, but not before he tagged along while Petters visited a local non-profit organization.

Petters had several charities he gave too, but he may have taken from one as well. 

Last Dec. 6 was supposed to be about Minnesota Teen Challenge. But Tom Petters took center stage in a rambling 25 minute speech that provides some insight into his personality and perhaps a glimpse into a business that federal investigators say was not what it seemed.

"And we, we, me, Tom Petters, I'm so inspired every year coming to the banquet. I can't remember hardly ever writing a check to this organization that would clear the day I wrote it because I didn't have the money. If I had the money that everybody thought that I had, then you know what, we would, we would go buy every building we could for Teen Challenge," he said back on Dec. 6.

Minnesota Teen Challenge is a faith-based treatment program for children and adults battling drug and alcohol addiction. Petters donated thousands of dollars to the group over several years.

"We also want to do something with Sun Country Airlines. We want to donate 50 roundtrip tickets to Teen Challenge so that wherever they have to bring people, or I don't care what you use them for, whether its your staff or whether its sending people home, or back and forth, or whatever it is, we want to do that. So there's 50 roundtrip tickets, there's a check for $25,000 ... and ... we love you, we love you," Petters said on Dec. 6.

Petters gave but he also took. Minnesota Teen Challenge said a single donor gave them $5.7 million and recommended investing the money in Petters organization.

Over seven years, Teen Challenge made more than a million dollars on that investment. But now, it has little hope of ever recovering its huge upfront investment.

"We thought he loved and cared for us. In the end, we were duped," said Teen Challenge in a statement.

Many organizations welcomed Petters generosity, not knowing millions may have come from what investigators call a scheme.

"But listen, we've been involved in diabetes and Big Brothers, Big Sisters and Make A Wish and all kinds of things but, guess what, this is one I can't say no to, ever, ever," Petters told Minnesota Teen Challenge.

Vascellaro emceed a charity event Petters attended just days before federal agents raided his business. He was a surprise guest and Vascellaro didn't have a script and so he introduced Petters as a great Minnesota citizen and business leader.

However, as more and more court papers emerge they seem to paint a picture of a public Tom Petters and another man most people knew nothing about.

The head of Minnesota Teen Challenge calls the Petters allegations an unbelievable shocker, but says the charity is not in jeopardy and does not anticipate any adverse impact on the number of people it can help.

"And what matters to us in this world is one person at a time if you can make a change, one person, one person life could change, wouldn't it be nice if you could be able to say that at the end of your life that you helped one person change their life," Petters said Dec. 6.

Minnesota Teen Challenge does not usually invest contributions. It did so this one time at the request of the person making the donation.

The non-profit said it sought a legal opinion and was told the investment in Petters was insured and backed by collateral.

 

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