Petters Found Guilty

A jury has found the businessman Tom Petters guilty of twenty counts of fraud, conspiracy, and other charges, composing what prosecutors called a $3.5 billion Ponzi scheme. Petters had claimed that his subordinates carried out the scheme without his knowledge. He was convicted of wire fraud, mail fraud, conspiracy, and money laundering. U.S. District Judge Richard Kyle has not yet set a date for sentencing.

Prosecutors alleged that Petters performed the fraud scheme by using phony documents such as purchase orders and bank statements in order to trick investors into thinking that they were financing real purchases. These fake purchases would then be resold to discount retailers, such as Costco.

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