Updated: 09/03/2009 1:29 PM KSTP.com | Print |  Email
By: Becky Nahm

Man Charged in Alleged Petters Scheme Pleads Guilty

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A man accused of helping Twin Cities businessman Tom Petters in an alleged scheme to swindle investors out of billions of dollars pleaded guilty to one count of conspiracy to commit wire fraud Wednesday.

Harold Katz, 42, entered the plea, as part of a plea deal, in federal court in St. Paul. Katz faces up to five years in prison.

Katz was a vice president for Lancelot Investments, an Illinois investment firm. He admitted he created fake banking transactions and documents to mislead investors.

The founder and owner of Lancelot, Gregory Bell, was also charged in connection with the alleged scheme.

Petters is in jail, awaiting trial on a 20-count indictment.