Petters Feeder Fund Owner Found Liable For Securities Fraud

Law360, Los Angeles (February 11, 2014, 8:17 PM EST) -- A Minnesota federal jury on Tuesday found a Connecticut-based hedge fund owner and his firms liable for securities fraud for funneling hundreds of millions of dollars in investor money into Thomas Petters' $3.5 billion Ponzi scheme, according to the U.S Securities and Exchange Commission.

The civil jury verdict comes after U.S. District Judge Ann D. Montgomery declined cross-bids for judgment in the SEC’s action in October, saying it would be up to a jury to sort out the facts. Now, following a two-week trial, the SEC...
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