Petters Whistleblower Sentenced

Sep 8 2010 | 12:23pm ET

Deanna Coleman, who blew the whistle on Minnesota businessman and hedge fund manager Thomas Petters’ $3.65 billion fraud, will be joining him in prison for the time being.

Coleman, who served as vice president of operations at Petters’ firm, was sentenced to a year and a day in prison for her role in the scam, which victimized at least 20 hedge funds. Coleman began cooperating with the Federal Bureau of Investigation two years ago—before which the authorities had no idea that something was amiss at Petters’ operations.

Coleman testified against Petters at his trial last year. Petters was convicted of 20 counts of fraud and money laundering in December. Prosecutors accused him of selling bogus notes linked to consumer electronics sales which never actually happened. Petters was also accused of employing at least one hedge fund to help him cover up his scam.

He was sentenced to 50 years in prison and has vowed to appeal his conviction.

Despite the fact that Petters might still be ripping people off if not for Coleman’s cooperation, U.S. Attorney B. Todd Jones noted that she “worked with Petters and others to dupe people out of a lot of money.”


In Depth

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Compelling Opportunities In The Alternatives Space

Jul 29 2014 | 9:33am ET

In an environment where many asset classes seem expensive by historical standards...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note