ST. PAUL, Minn. (WCCO/AP) — A federal appeals court heard arguments Thursday on whether former Minnesota businessman, Tom Petters, deserves a new trial after being convicted of orchestrating a $3.7 billion Ponzi scheme.

The case was heard before a three-judge panel in the 8th Circuit of Appeals in St. Paul.

Petters’ attorney argued that his conviction should be overturned because the defense team was unable to fully question Larry Reynolds who pleaded guilty in the case.

Attorney Jon Hopeman argued that it was Reynolds who was the real mastermind behind the fraud.

They said they wanted to delve deeper into the criminal past of Reynolds, who has a lengthy criminal record and was at one time placed in the Federal Witness Protection Program.

Petters’ attorneys said they were prevented from presenting their full defense to the jury in his 2009 trial where he was convicted on 20 counts of fraud, money laundering and conspiracy.

Petters is now serving a 50-year sentence at the federal prison in Leavenworth, Kan. His attorneys are hoping to reduce that time.

There is no deadline for the Appeals Court to rule.

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Comments (2)
  1. elmo says:

    Federal Trials have a 98% Conviction rate. They also have Mandatory Minimums that they don’t tell the Jury. Is the guy perfect? No, but neither are you. I’d love to see the Feds start to handle Fair Trials. How would the Feds feel if Vegas has a 98% win rate? Money and women are the biggest contributer to prisons. Even the drug dealers do it for the easy money.