Petters’ Forger Gets Five Years

Sep 17 2010 | 1:13am ET

Robert White, whose forgeries helped fuel Thomas Petters’ $3.65 billion Ponzi scheme, has been sentenced to five years in prison.

White admitted he forged 10,000 documents that Petters, a Minnesota businessman and hedge fund manager, used to show investors purported consumer electronics sales backing bogus notes. At least 20 hedge funds were victimized by the scam, and at least one helped him cover up his crimes. Petters was convicted of fraud last year and sentenced to 50 years in prison.

White testified against Petters and “built up the government’s case in a major way,” U.S. District Judge Richard Kyle said. But Kyle rejected White’s bid to receive the same year-and-a-day sentence as Petters whistleblower Deanna Coleman. Still, White could have received up to 20 years in prison; with good behavior, he could be out of prison in three years.


In Depth

Q&A: George Schultze On His Fund's Unique Approach to Distressed Investing

Apr 16 2015 | 1:01am ET

George Schultze is a managing member of Schultze Asset Management, a long/short...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Minnesota Supreme Court Rejects The Ponzi Scheme Presumption: Lenders Claw Back Some Of Their Own Rights

Apr 17 2015 | 9:23am ET

A recent court ruling in Minnesota has put an end to the Ponzi Scheme Presumption...

 

Editor's Note