Petters Group Worldwide | Hedge Fund Fraud?

Petters Group Worldwide

Petters Group Worldwide Under Fire

Asset-based lending hedge fund firms are organizing to try to get their money back from a company executive who was tossed into jail for allegedly masterminding a $2 billion fraud.

Tom Petters, the founder and former head of Minneapolis-based Petters Group Worldwide, was sent to jail Friday to await a hearing on Tuesday, after the FBI raided his business and home last week. Petters was charged with taking investment dollars to back a venture where expensive retail items, like wide-screen TVs, were bought from wholesalers and sold to discount chains. The whole thing turned out to be a fake, according to the charges.

The FBI, working with a confidential informant, got one of Petters’ co-conspirators on tape saying that the fraud could amount to more than $2 billion.

In court papers asking the judge to deny bail for Petters, the U.S. Attorney’s office claimed that he was going to flee. Petters also encouraged someone who might be a potential witness against him to leave the country, the government charged.

A group of investors that had about $3 billion in loans to various Petters entities went into state court in Illinois Friday and had a receiver appointed to sort out the mess, according to a report in the Star Tribune. It remains to be seen, however, how the Illinois court can claim jurisdiction over Petters companies, which are based in Minnesota. Source.

Related to Petters Group Worldwide:

Tags: Petters Group Worldwide, Petters Group Jail, Petters Group Hedge Fund, Petters Group Worldwide Fraud, Petters Capital

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Hedge Fund Videos | 30+ Free Videos on Hedge Funds