Tangled In $3B Fraud Suit, Petters Files For Ch. 11

Law360, New York (October 13, 2008, 12:00 AM EDT) -- Venture capital firm Petters Co. Inc. has filed for Chapter 11 protection just weeks after federal prosecutors jailed the company's CEO for allegedly bilking investors of over $3 billion in a massive fraud scheme.

Petters Co. filed for bankruptcy on Saturday in the U.S. Bankruptcy Court for the District of Minnesota, listing between $500 million and $1 billion in liabilities. Parent company Petters Group Worldwide LLC also filed for Chapter 11 on Saturday in the same court, listing less than $50,000 in liabilities.

Another Petters division,...
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