Hedge Fund Managers Plead Guilty In Petters’ Case

MINNEAPOLIS (AP) — Two Florida hedge fund managers have pleaded guilty to lying to investors about investments in convicted Minnesota businessman Tom Petters’ former company.

David Harrold and Bruce Prevost each pleaded guilty Thursday to four counts of securities fraud.

Prosecutors accused Harrold and Prevost of giving false information about Petters Co. Inc. to investors. They were indicted Wednesday along with former Petters associate Frank Vennes.

Vennes, who also lives in Florida, also is charged with money laundering. He has not entered a plea.

Prosecutors alleged Harrold and Prevost falsely told investors PCI was generating profits. Petters is serving a 50-year sentence after being convicted of orchestrating a $3.7 billion Ponzi scheme through PCI. Petters is appealing.

Sentencing for Harrold and Prevost has not been scheduled. They each face up to 20 years.

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 This material may not be published, broadcast, rewritten or redistributed.)

  • jonathan

    Republican “birthers” = Xenophobic and racist hate-mongers

    • Rusty Shackelford

      America is a melting pot, and our fore fathers had enough vision to recognize that. The reason we have a rule stating you have to be an American born citizen is so hopefully there will be no prejudice when governing this great country. There can be no wavering on this issue the world is too complicated. YOU are the racist, those who use that term first usually are.

    • Victim Du Jour

      Based on public records in the National Archives and the Library of Congress, the Democrats are the only party that has to apologize for racism.

      The GOP has a good voting record on civil rights dating back to the mid-1800’s.

  • Rusty Shackelford

    Now will our Congressmen/women and Senators do something beside cover this up? I believe every politician that had anything to do with hiding his birthplace should be impeached and possibly kicked out of the USA after serving a prison sentence of no less than 25 years. There is no wonder the rest of the world is laughing at us, they knew about this fiasco.

  • Victim Du Jour

    Why do they always have a mug shot of Petters, when it’s not him pleading guilty in a courtroom?

    They did the same when a woman in Edina plead guilty to something too.

    Shouldn’t they use the mug shots of the people pleading guilty in the court hearings?

  • David J. Conklin

    Nothing is being hidden. President Obama wasn’t born in Kenya.

  • David J. Conklin

    Get back under your rock.

    • Rusty Shackelford

      I’m out there everyday homeboy. I’m sure you’ve seen me before.

  • David J. Conklin

    American Patriot: Why are you afraid to use your real name?

    • James Hernandez/American Patriot

      You are, and should be afraid. I cannot believe you all did this, and still here, you defend this atrocity. You belong in a cell.

  • Keeping it real in Minnesota

    Tom Petters……hummmmmm…..what is it now?…49 more years left until his first chance for parole?…..(sick of hearing about petters WCCO)….why don’t you do some stories about the business owners who lost millions because of this parasite?…..go do some stories to give their businesses some PR…..and a boost…..leave Petters to his cell for the next 49 years.

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