Updated: 07/20/2009 4:23 PM KSTP.com | Print Story
By: Becky Nahm

Petters Fails to Keep Accounting Records from Prosecution

COURT DOCUMENTS:  View the release request  Read Petters motion to be freed  Read Petters detention documents  Read the affidavit  Petters Group Worldwide bankruptcy documents  Intervention in Petters case denied BACKGROUND ON PETTERS:  Biography of Tom Petters  RELATED STORIES:  Petters' Trial Pushed Back   New Twist in Tom Petters Case NJ: No Liquor for Redstone Unless Petters is Out  Petters to be arraigned on updated indictment  Attorneys in Petters case in paper blizzard battle  JUDGE: Petters' statements, evidence allowed in trial  Govt. moves to block attempt to unfreeze Petters' assets    In the market for a boat? Tom Petters is selling his  Did Tom Petters confess guilt?  Tom Petters' associate freed from home detention  Petters associate asks to be removed from home monitoring  Judge denies Petters's change of venue request  Federal prosecutors respond to Petters' request to move trial  Petters associate to be 'immediately' released from jail  Petters requests change of venue for trial  Petters co-defendant asks for frivolous monthly increases  Petters associate asks for jail release  Judge revokes bail for Petters associate  Petters associate to be searched again for assets  Motion filed to send Petters associate to jail  OFFICIAL: Petters hiding money from court   Petters makes third request for release  FEDS: Petters' associate knew of scheme  Attorneys say Petters not a flight risk  Petters' attorney: 'There's been rush to judgment'  Petters associate transported to Sherburne Co. Jail   Petters Group Worldwide files for Ch. 11   Petters ordered held, 3 associates plead guilty   Excelsior man charged in Petters matter  Petters charged with fraud, will be held in jail   Court documents unsealed in Petters case   Petters resigns   Petters meets with employees after raid  Warrant alleges $100M fraud by Petters HOW THE CASE AFFECTS OTHERS:  Sun Country Could Lose 2 Planes in Petters Legal Mess  Bid of $85.9M accepted for Polaroid assets   Petters case leaves Rochester bank out $7.1M  Non-profits, charity groups sue Petters, associates   Top Minn. politicians return Petters donations   Hedge fund sues Petters, alleging swindle  How bad is it? Sun Country says they're $4M in debt  Sun Country files for bankruptcy protection   Sun Country warns of possible shutdown   Sun Country defers half of paychecks   Interview with Sun Country's CEO

A judge denied a motion from Tom Petters' attorneys Monday to prevent a court-appointed receiver from sharing accounting information with the prosecution.

Petters, the founder and former CEO of Petters Group Worldwide, is accused of running a $3.5 billion Ponzi scheme.

In this latest motion, Petters' attorneys noted that the receiver, Douglas A. Kelley, hired an accounting firm to investigate the finances of Petters' co-defendants. The motion sought to bar the receiver from sharing the information with prosecutors. Judge Arthur J. Boylan denied the motion without prejudice.

Boylan wrote, "the court finds no grounds on which to assert jurisdiction in this criminal proceeding over the receiver in a separate civil action."

Boylan also issued rulings on additional motions.

He granted a motion filed by the Star Tribune and ordered the court clerk "to provide a general description of documents filed under seal."

Petters also wanted sealed motion papers released. The judge ordered that redacted versions of the documents be added to the docket.

Petters was indicted on 20 counts. He pleaded not guilty. He is scheduled to go on trial Oct. 26.