Final 3 Defendants Sentenced In Petters Scheme

ST. PAUL, Minn. (AP) — The final three defendants have been sentenced in the $3.65 billion Ponzi scheme led by Minnesota businessman Tom Petters.

U.S. District Judge Richard Kyle handed down a 7 ½-year sentence Friday to hedge fund manager Bruce Prevost for his role in misleading investors in Palm Beach Capital Management, a Florida hedge fund that put money into Petters’ scheme before it collapsed in 2008.

He sentenced David Harrold, another principal in Palm Beach, to five years.

But another defendant, Michelle Palm, the former managing director of Arrowhead Capital Management in Minnetonka, got only probation. Kyle said she cooperated in the government’s investigation and did not profit from the fraud.

Petters, who recently admitted his guilt for the first time, is seeking to reduce his 50-year term for masterminding the scheme.

(© Copyright 2013 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

Comments

One Comment

Leave a Reply

Fill in your details below or click an icon to log in:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From WCCO | CBS Minnesota

Goin' To The Lake
The Leaderboard
%d bloggers like this:

Listen Live