View the expense request
 Read the judge's ruling

A judge has denied the request for one of Tom Petters’ co-defendants, who had asked the court for an increase in his monthly expenses, while being imprisoned.

On Monday, Judge Ann Montgomery only approved a $817.40 increase in monthly health insurance premiums for Larry Reynolds and stated all other requests were ‘not reasonable and necessary living expenses.’

Reynolds, 67, of Las Vegas--who currently is under house arrest in California--made the request late January, asking for a $3,060 increase to his monthly allowance.

Attorneys for Reynolds said he cannot live on $528 a month for groceries for him and his wife and required a $1,000 increase. Reynolds also said $53 wasn’t enough for toiletries and wanted the amount tripled to $159 a month.

He also requested for his ‘miscellaneous’ spending to be tripled from $250 to $750.

He also asked for $120 to pay for Direct TV at his home in Los Angeles, Cali. and an additional $130 for the service at his Las Vegas, Nev. Home. Plus he needed $290 for his health club membership, according to court documents.

The laundry list of additional expenses goes on—to include $16,410 to pay for bills he fell behind on while in prison and $33,430.71 to pay for outstanding legal and medical bills.

"Receivership funds will not be used to maintain the status quo for the lifestyle to which Reynolds may have been accustomed at others’ expense," Montgomery said.

Reynolds’ assets were frozen in October after he pleaded guilty to mail and wire fraud, money laundering and obstruction of justice in the multi-billion dollar Ponzi scheme, allegedly masterminded by Petters.

Reynolds has not yet been sentenced.

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 THE STORY:
 Biography of Tom Petters
 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:
 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