Petters convicted in $3.65B Ponzi scheme

ST. PAUL, Minn., Dec. 2 (UPI) -- A federal jury convicted Minnesota businessman Tom Petters Wednesday on all 20 counts in a $3.65 billion Ponzi scheme.

The 52-year-old chairman of Petters Group Worldwide, whose holdings included Sun Country Airlines, Polaroid Corp. and Fingerhut, could receive a life prison sentence for bilking investors, the Minneapolis Star Tribune reported.

The jury returned the verdict after deliberating 31 1/2 hours over five days.

Ralph Boelter, FBI special agent in charge of the Minnesota regional office, called the verdict "a very satisfying result to this case. ... It's difficult to comprehend the loss that was perpetrated on the community and the investors.

"I hope today's result provides at least some measure of satisfaction" to the victims."

U.S. District Judge Richard Kyle said sentencing would probably come in a few months.

Petters, of Wayzata, Minn., blamed the scheme on underlings. They had already pleaded guilty and testified he masterminded the massive fraud in which investors were duped into believing his companies were selling consumer goods that didn't exist.

In September 2008, Deanna Coleman, a longtime employee and onetime lover of Petters, told federal authorities of the investor fraud scheme, the newspaper said.

The government then wired her -- and, at the trial -- played more than 17 hours of excerpts from taped conversations among her, Petters and others in the scheme.

Assistant U.S. Attorney Tim Rank said the tapes helped the jury understand the complicated scheme.

"We did our best in trying the case to make it more understandable. Obviously, the jury went through everything. They did their job," he said.