The fraud case against Tom Petters won't be dismissed and his attorneys won't be allowed to quit.

On Wednesday, the indicted Twin Cities businessman asked for the statements he made to the FBI to be thrown out.

The judge heard testimony from federal agents in Las Vegas who interviewed Petters in his suite at the Bellagio Hotel on the same September day that federal agencies raided Petters Worldwide headquarters in Minnetonka.

"We don't have any merchandise in these warehouses. It doesn't exist. I'm the guy in charge and I'll bite the bullet if I need to," Petters said, according to the Nevada investigators.

While prosecutors are calling it a 'confession,' the defense says the statements were obtained improperly and Petters wasn't given a Miranda warning.

They also asked for the evidence seized at Petters' home and business to be thrown out. However, the court said no.

The attorneys were also concerned they won't be paid for their work because Petters' assets are frozen. But the judge said so far all of their fees have been paid. He did leave open the possibility that the attorney-fee issue could resurface at a later date.

Petters attended the hearing, along with his girlfriend and several friends and family members.

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 

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HOW THE CASE AFFECTS OTHERS:
 IRS giving relief to Ponzi scheme investors 
 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