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9 Mar 2010

Minnesota Hedge Fund Manager Petters May Face Double Madoff Term

HedgeCo News - U.S. prosecutors yesterday recommended a sentence of 335 years in prison for hedge fund founder Thomas Petters, more than twice the term given to Bernard Madoff, according to Bloomberg. Petters was charged with mail and wire fraud, money laundering and obstructing justice.

A federal judge in Minneapolis ordered Petters to be held without bail in October 2000, after a taped phone conversation revealed that the disgraced entrepreneur planned to leave the country.

Petters and his hedge fund, Petters Group Worldwide LLC was convicted in December 2000, of all 20 criminal counts, adding up to a $3.5 billion fraud.

“The defendant’s fraud is staggering and unprecedented in size and impact on victims and the community,” prosecutors said, according to Bloomberg.

The case is U.S. v. Thomas Joseph Petters, U.S. District Court, District of Minnesota. The final sentencing is set for April 8th.

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