Petters Partner Gets 17.5 Years For Ponzi Scheme

Law360, Los Angeles (October 11, 2013, 10:09 PM EDT) -- A Minnesota federal judge sentenced the former president of hedge fund Arrowhead Capital Management LLC to 17.5 years in prison for wire fraud, securities fraud and lying to the U.S. Securities and Exchange Commission in Thomas Petters’ $3.7 billion Ponzi scheme, according to an order signed Friday.

U.S. District Judge Richard H. Kyle put away James Nathan Fry for his role in the scheme, in which Fry intentionally misled investors while channeling $600 million in investor funds into Petters’ scheme and lying to investigators.

Fry will...
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