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Edina Woman Pleads Guilty In Petters case

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(credit: Sherburne County Jail)

(credit: Sherburne County Jail)

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MINNEAPOLIS (AP) — A 43-year-old Edina woman has pleaded guilty for her role in the $3.7 billion Ponzi scheme allegedly led by Tom Petters.

In her plea agreement, Michelle Webster Palm admitted that from September 2007 through September 2008, she misled investors regarding the purchase and sale of securities.

Palm was working for Arrowhead Management, which operated three hedge funds that invested almost exclusively in promissory notes from Petters Co. Inc.

Although Palm was not aware of the Ponzi scheme, officials say she made the fraud more difficult to detect.

Palm pleaded guilty Friday to one count of securities fraud and one count of providing false statements to a government agent. Each carries up to five years in prison. A message left with her attorney was not immediately returned.

Petters was sentenced to 50 years in prison for fraud, money laundering and conspiracy.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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