Updated: 03/16/2009 1:07 PM KSTP.com | Print Story
By: Elena Kibasova, Web Producer
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Federal prosecutors respond to Petters' request to move trial
 

Federal prosecutors issued their response to Tom Petters' request to get his trial moved out of state.

In February, Petters' attorney asked that his trial be moved to Wisconsin or Iowa. The argument was that he wouldn't get a fair trial due to all the media attention in Minnesota. But in documents released this weekend, the U.S. attorney says there is no reason to move the trial out of state.

The U.S. attorney said, "The defendant's rhetoric is wholly disconnected from reality."

The argument is that any pretrial publicity related to his being charged with running an alleged $3 billion ponzi scheme can be squarely placed on Petters.

Criminal Defense Attorney Jeff Degree thinks the U.S. attorney wins the motion easily.

"In federal court you're dealing with a much larger pool," Degree said. "So I don't know that folks in Rochester, Waseca and the rest of the state have been paying as much attention to things in Petters case as here in Minneapolis."

The U.S. attorney argues, "A change of venue would impose additional costs to taxpayers and victims due to pretrial publicity the defendant himself fostered."

In February, Petters also filed a motion for improved treatment at the Sherburne County Jail, saying conditions were deplorable. According to Petters, he wasn't allowed exercise and chained every moment out of his cell.

To that assertion, the U.S. attorney responded, "There has been no showing that the jail is doing anything other than following its procedures. The defendant simply wants special treatment."

Petters is being charged with fraud, money laundering and conspiracy. His trial is set to start in June.

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 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:
 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