Feds Bear Down On $3.7B Petters Fraud Fundraisers

Law360, New York (July 20, 2011, 3:26 PM EDT) -- Prosecutors on Tuesday broadened their crackdown on Thomas J. Petters’ $3.7 billion Ponzi scheme, heaping new charges in Minnesota on one of the scheme’s primary fundraisers and implicating yet another hedge fund manager in the fraud.

In a superseding indictment, the U.S. Department of Justice elaborated on the initial charges against Petters’ longtime associate Frank Elroy Vennes Jr., adding 17 counts in connection with the swindle, and dragged James Nathan Fry, the head of Arrowhead Capital Management, into the suit.

“Beginning in or about 1999 through...
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Case Information

Case Title

USA v. Petters, et al.


Case Number

0:08-cv-05348

Court

Minnesota

Nature of Suit

Fraud

Judge

Ann D. Montgomery

Date Filed

October 2, 2008

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