Friday, September 26, 2008
Martin Moylan, Minnesota Public Radio,
Martin Moylan, Minnesota Public Radio,
Warrant alleges fraud by Petters
The FBI said it has recordings of Twin Cities businessman Tom Petters repeatedly admitting to defrauding investors. Petters heads Minnetonka-based Petters Group Worldwide, owner of Sun Country Airlines and Polaroid. A federal search warrant unsealed late Friday alleges Petters, and others, showed investors fake documents to convince them to provide money to the financially stressed company.
Minneapolis — Late Friday afternoon the federal government revealed what FBI, IRS and other federal agents were looking for Wednesday when they raided the Petters Group headquarters and Tom Petters' home.
They were seeking evidence of a scheme to lure investors into funding a company based on tens of millions of dollars in purchases and sales that never occurred.
The affidavit alleges Petters is caught on tape repeatedly admitting to the fraud scheme by providing false information to investors. He allegedly talks about fleeing the country if the scheme is discovered. The affidavit also said Petters admits to cheating on his taxes.
One alleged participant estimates the total fraud on investors exceeds $2 billion.
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Posted by Editor on 09/26/08 at 02:03 PM •
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