Ponzi Record

United States ยท To 2008 (the FBI release describes the scheme up to 2008)

Petters Company Inc. (PCI) note financing

The FBI said investors were told their money would fund merchandise purchases that PCI would resell to retailers at a profit, that no such purchases were made, and that investors were paid with money from newer investors. It said fabricated purchase orders and false financial statements were used.1

Losses as statedThe FBI described a scheme of about $3.7 billion. The Star Tribune reported $1.9 billion in cash taken.1,2
Victims as statedNot stated in the sources reviewed.
Recovered for investorsThe Star Tribune reported on 30 July 2021 that court appointed receiver Douglas A. Kelley recovered about $722 million for victims and creditors before the receivership was ended.2

People and outcomes

Thomas J. Petters

Convicted on 2 December 2009 on 20 counts, including wire fraud, mail fraud, conspiracy and money laundering. Sentenced on 8 April 2010 to 50 years in federal prison by Judge Richard H. Kyle.1

Response: Petters contested the charges at a month long trial, according to the FBI.1

Timeline

  1. Jury convicts Petters on 20 counts.1
  2. Petters sentenced to 50 years in prison.1
  3. Receivership ended with about $722 million recovered, the Star Tribune reports.2

Sources

  1. FBI Minneapolis, Minnesota man sentenced to 50 years in federal prison for orchestrating $3.7 billion Ponzi scheme (8 April 2010)
  2. Star Tribune, Feds' receiver done clawing back money for victims of Petters' $1.9B Ponzi scheme (30 July 2021)