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Petters, the forgotten Ponzi

July 14, 2009

The alleged $3 billion Ponzi scheme involving Tom Petters has never gotten the attention it deserved.

Some of that is because the case broke open right around the time Lehman Brothers was filing for bankruptcy. And given that the scandal took place in Minnesota and involved mainly midwestern hedge funds funneling money to Petters operation, it didn’t galvanize the attention of the East Coast media.

But Petters continues to make headlines–albeit small ones–even as Bernie Madoff and Marc Dreier go away for lengthy prison sentences.

Most notably, the Securities and Exchange Commission last week filed civil charges against Greg Bell, the former manager of Chicago-based hedge fund Lancelot Management, which invested $2 billion in Petters’ operation. Regulators allege that Bell “pocketed millions of dollars in fraudulent fees at the expense of investors in the funds.”

Kudos to Dealbreaker.com and freelance journalist  Teri Buhl for staying on the Petters story and speculating which other hedge fund manager may be on the SEC’s radar screen.

Comments

Thanks Mr. Goldstein.

It is reporters like you and Teri Buhl

That help the common man see the real deal!

 

And don’t forget the Rep. Michele Bachmann and Former Sen. Norm Coleman connections to Tom Petters’ top associate, convicted money-launderer/drug and gun runner Frank Vennes Jr. Both wrote letters of recommendation for presidential pardons for Vennes, who was a heavy contributor to both politicians’ campaigns.

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Posted by Karl | Report as abusive
 

1 September, 2009

B Todd Jones, US Attorney
Minnesota District US Attorney’s Office
300 S 4th Street, Suite 600
Minneapolis, MN 55415
612 664-5600 VIA US Mail and FAX (612) 664-5787

Dear US Attorney Jones:

This writing seeks your expedited assistance in appointing a special prosecutor, replacing receiver Doug Kelley, to oversee and adjudicate the entire Petters matter, both as to matters which are now before the Minnesota US District and Bankruptcy courts, and to stay all matters until such an appointment is made and a grand jury is convened, all under authority given you as follows:

18 USC Sec. 3332
TITLE 18 – CRIMES AND CRIMINAL PROCEDURE, PART II – CRIMINAL PROCEDURE
CHAPTER 216 – SPECIAL GRAND JURY
Sec. 3332. Powers and duties -STATUTE-

(a) It shall be the duty of each such grand jury impaneled within any judicial district to inquire into offenses against the criminal laws of the United States alleged to have been committed within that district. Such alleged offenses may be brought to the attention of the grand jury by the court or by any attorney appearing on behalf of the United States for the presentation of evidence. Any such attorney receiving information concerning such an alleged offense from any other person shall, if requested by such other person, inform the grand jury of such alleged offense, the identity of such other person, and such attorney’s action or recommendation.

U.S. Attorneys Criminal Resource Manual 158
Special Grand Juries

The special grand jury has a duty under 18 U.S.C. § 3332(a) “to inquire into offenses against the criminal laws of the United States alleged to have been committed within that district.” Such alleged offenses may be brought to the jury’s attention by the court or by any attorney appearing for the United States to present evidence to the jury. It is incumbent upon any such government attorney to whom it is reported that a Federal offense was committed within the district, if the source of information so requests, to refer the information to the special grand jury, naming the source and apprising the jury of the attorney’s action or recommendation regarding the information.

Such actions requested of you are congressionally mandated plus they are necessary because the current atmosphere is fraught with thus far unabated felonies by various officers of the courts at the imperilment of creditors like me. In short, the Petters matter is out of control and I don’t see any remedies forthcoming, either in the long or short-term, plus a grand jury has already indicted Petters on twenty (20) counts of fraud.
I have advised the courts, who appointed Kelley, of such criminal activity to no avail, and even though I will have done my duty to report such felonies under 18 USC § 4, such reports will never be acted upon because receiver Kelley and the courts are focusing only on paying Petters, his cronies, his lawyers, his illegitimate family, receiver Kelley and all other lawyers who are representing the perpetrators themselves; hereinafter “Petters et al”. This of course is ludicrous and most certainly criminal itself.

I notice on your website that Petters is one of your top priorities and that said case “appears to be serving as Exhibit A for Jones’ desire to increase collaboration between the office’s criminal and civil divisions in complicated cases that require expertise in both prosecutorial arenas” Acting on this instant request, sir, will allow you to accomplish the above objectives. My case is combinationally criminal and civil; ergo, this request.

I am a long-term victim-creditor of Petters and have reported crimes, which are still being committed by receiver Kelley and being apparently ignored by the Minnesota US District and Bankruptcy Courts who appointed him. Said crimes are that Kelley and the courts are on an apparent mission to drain all Petters’ liquidated assets (which Petters acquired with swindled cash) and to turn such liquidated properties over to Petters et al, without any accounting at all to me and the many other victims whose money Kelley continues to squander under a “guise” of legitimacy.

For many years now, I have been asking both the US District Court and the Bankruptcy courts for interim relief since the inception of the Petters matter, yet the only financial relief I see being attended to by all such courts by and through Kelley are to Petters et al. Kelley is even on the record stating “creditors come last”- see http://www.petters-fraud.com.

In the 2000-2001 timeframe, both Senators Wellstone and Dayton were contacted by me because it had become obvious that Petters and his primary crony at that time Ruth Kahn, conspired (in conspiracy with the Hennepin County Attorney) to have me arrested on false charges so Kahn (with me out of the way) could claim my promissory Notes on her bankruptcy schedules (to pay her creditors) and Petters could get his Notes back without paying me a “dime”. At the time I contacted the Senators, Kahn had already confessed to what she and Petters had done but both state and federal bankruptcy courts refused to return the notes and my money, notwithstanding such Kahn confessions (two affidavits) which are of record. Acting on such validated evidence which included seven (7) promissory Notes and five (5) bounced checks, both Senators Wellstone and Dayton demanded a criminal investigation by both the FBI and the US Attorney’s Office where after only the FBI would meet with us- that meeting took place in December of 2001 and at that meeting, two special agents of the FBI told us that there were a number of judges known to be corrupt here in the Minnesota district and then asked me who the state and federal bankruptcy court judges were who presided over the Kahn/Petters orchestrated bankruptcy swindle, and after telling them who they were, I was told that I had drawn most of them. After they told us that they (the FBI) would not criminally prosecute said judges, we asked why and were summarily and without a plausible explanation told “we do not prosecute corrupt judges”. The FBI then advised me to sue all of the perpetrators of this massive swindle including the corrupt judges, which I did in May of 2002.

The FBI, in making this recommendation to me, advised that such a suit brought by me in US District Court would offer the relief I sought. That suit (actually five of them all contemporaneously filed) went nowhere and in point of fact, I was not only denied access to my property and money that Petters swindled (for which he has now been criminally indicted), but prosecuted as a Plaintiff by the court for asking to have my property and money returned, and then told not to file for further relief against Petters. In 2008, that same judge prosecuted Ponzi schemer Petters for fraud, which I was prevented from doing in 2002.

In short, seven (7) years before he was arrested and criminally indicted for swindling everyone in his path including me, I blew the whistle on Petters for swindling me (along with two (2) United States Senators plus US Attorney David N Kelley of the New York Southern District- Kelley and I tried to stop the Polaroid acquisition in June of 2005 when Petters bought Polaroid for $426 million in swindled cash), got the door slammed in my face, and had all of my money and property embezzled by Ponzi schemer Petters. In five separate causes of action, I sued Petters, Kahn, and all others with whom Petters and Kahn conspired to swindle my money and property which included various judges in Hennepin County District Court and the Minnesota bankruptcy courts. Before doing so, I asked the FBI what made them believe that the judges at the US District court level were not part of the same judicial corruption about which they espoused and they offered no comment. During the pendency of these meetings with the Senators and the FBI, both Senators Wellstone and Dayton also made demands (for a criminal review) upon the Minnesota US Attorney’s Office. Such demands were ignored. Ever since, it has been increasingly difficult in fact impossible for me to have my money and property stolen from me by Petters et al returned, and frankly, when Petters was arrested, I rejoiced thinking that this would lead to a return of the money and property which he had earlier swindled from me. That turned out to be wishful thinking. Receiver Kelley had other plans for my money, as do the courts.
You are possibly aware that USAG John Ashcroft declared our bankruptcy courts as “organized crime” and Fifth Circuit Chief Judge Edith Jones averred that the “AMERICAN LEGAL SYSTEM IS CORRUPT BEYOND RECOGNITION”.
To accept such comments at face value is to accept that we are living in anarchy and not a country governed by the rule of law. This is why I have opted to take this matter to someone such as yourself who I am told will uphold the law. Because such combined criminal and civil offenses have persisted now for over a decade, your office is congressionally mandated to act on such matters which have gone civilly and criminally unprosecuted now for over a decade.
In the course of this twelve (12) year “kafkaesque”, I discovered that Petters had a long track record of buying judges and politicians (boasting of his judicial and political “clout” here in the Minnesota District) to keep him out of harm’s way, at least until he was arrested in October of 2008 which of course I had reported much earlier to the FBI in 2001. At this stage however, it is a foregone conclusion that Kelley and the courts will direct all liquidated cash realized by and through the efforts of receiver Kelley and the courts into the pockets of Petters et al, whether Petters is criminally convicted or not. Petters, even in jail, is “above the law” and pocketing money from me and the many others he has swindled, now via a court-appointed receiver.

Sir, it is indeed time to appoint a special prosecutor before Kelley and the courts drain every dime to pay Petters et al and leave me and other similarly situated creditors permanently impoverished. As of September of this year, I am entitled to a return of and on capital loaned Petters in the amount of $46,400,357.32 and I watch literally on a daily basis this money go to Petters et al. I’ve received nothing to date. This is egregiously unlawful and morally repugnant, and can be stopped by and through the involvement of a special prosecutor who will uphold the law and respect the rights of the victims, and not the perpetrators. I have asked for this on a regular and consistent basis beginning in March of this year with the Kishel Polaroid bankruptcy proceeding, and after twelve (12) such prayers (which I urge you to review) for relief with the Kishel court, the last being 13 August, 2009 where I collaterally noticed USAG Holder, the Kishel court continues to ignore requests for a special prosecutor, for discovery, for interim or permanent relief, for a “clawback” of all past monies unlawfully paid by Kelley (also suggested by Assistant US Attorney John Marti), instead directing his (Kishel’s) attention and all cash to Petters et al.

Because I have been civilly and criminally assaulted now for over a decade by courts which have been recognized by the FBI as corrupt (both state and federal) within this Minnesota District, and the US bankruptcy court is now holding many of the purse strings which contain money and property embezzled from me initially by Petters and now Petters et al, I must continue to remind you as the Minnesota US Attorney, pursuant to 18 USC § 4, of the continuation of such civil and criminal malfeasance with an expectation that you, sir, might arrange for the appointment of a special prosecutor and the convening of a special grand jury as also mandated under 18 U.S.C. § 3332(a). So this office is appropriately aware of damages sustained thus far because of such civil and criminal malfeasance on the part of Petters, and now Petters et al, apparently abetted (according to the FBI) by various offending judges, I have attached hereto two (2) spreadsheets; that is, a Proof of Claim and an interim relief assessment as part of an interim or permanent claim against personal or corporate estates of his whether a decision is handed down by a court of competent jurisdiction or the grand jury itself. Because I lack the necessary finances (between Petters and the courts, I am destitute) to hire counsel of choice, I must leave the prosecution of such causes to your office- this should have been done in 2001 when relief was first demanded by both Senators Wellstone and Dayton.

In conclusion, Petters, his lawyers, his advisors, those he paid to protect him from being arrested; that is, “Petters, his band of thugs”, were able to get away with this massive swindle for almost two (2) decades, and now that he has been jailed, the courts are directing receiver Kelley to liquidate Petters’ various estate holdings (all acquired with swindled cash) and to turn all such liquidated cash back over to Petters, his band of thugs on a priority basis over any creditor making a similar claim upon any such estate.

This is a runaway freight train which can only be stopped by a special grand jury armed with the facts, operating under the watchful eye of a no-nonsense special prosecutor.

If nothing is done to alter the current administration of the Petters’ holdings, whether Petters goes free or spends the rest of his life in prison, all of the money this man swindled from me and the multitudes will permanently scar the State and will continue to raise additional questions of why the presiding judges continued to favor Petters over his many victims, even after Petters was criminally indicted on twenty (20) counts of fraud.

The FBI has already told us how Petters was allowed to get away with this but the truth will never memorialize as long as the administration of the Petters matter remains vested with a “corrupt judiciary”; that is, no judge would ever indict another.

Allow me, as the author of this prayer for relief, to wish you God’s Speed as you deliberate the merits of this prayer and hopefully and accordingly make the necessary arrangements to re-convene a special grand jury to work in concert with a special prosecutor to replace receiver Doug Kelley.

The welfare of my family as the welfare of the tens of thousands of other victims of predator Petters rests in your very able hands.

Thank you kind sir for your courtesies and forbearance. Time is of the essence. Please act before it’s too late. Matters at this time are substantially out of control and you have been empowered by President Obama and Congress to effectuate remedies. I pray that you will. It would delight me immensely to re-communicate with Chief Judge Jones that justice did ostensibly prevail for me here in the Minnesota District under your leadership after “living a life of hell” since 1997.

In addition to this writing and the record itself, the grand jury would perhaps find instructive an hour long video which I prepared for various congressional leaders.

Respectfully,

Richard Hettler
4818 Overlook Lake Circle
Bloomington, Minnesota 55437
Tel: 612 285-8458

Attachments: Proof of Claim as of 1 Sep, 2009, interim relief request (ignored by all courts)

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