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Petters again seeks reduced sentence as his former bank comes under scrutiny

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Attorneys for convicted businessman Tom ­Petters are taking another shot at reducing his 50-year prison sentence.

The Star Tribune reports that attorney Steve Meshbesher said Monday that Petters deserves a hearing because the Wayzata businessman was not told about an offer for a 30-year sentence until after his conviction.

“Defendant Petters affirms that the very first time the 30-year cap was ever raised was during a meeting in the U.S. marshal’s holding cell immediately following his trial and conviction,” Meshbesher wrote in a brief filed with U.S.Distrct Court Judge Richard Kyle.

Prosecutors have argued that Petters was aware of the potential 30-year cap on a prison sentence and rejected it multiple times.

Meanwhile, the Business Journal reports that a new lawsuit seeks to have Edina's Crown Bank turn over $2 million in allegedly fraudulent transfers involving Petters.

In the suit, receiver Doug Kelley said Crown Bank pressured Petters to pledge two properties as collateral for a line of credit the day after a federal raid on his home and business. The deal was illegitimate, Kelley's suit argues, because Crown was aware of the fraud and knew Petters couldn't repay the loan.

Crown CEO Peter Dahl told the Business Journal that the suit is "frivolous." He said a judge already upheld the mortgages.

Earlier this year Judge Kyle denied the U.S. Attorney's bid for control of the properties, saying that Crown Bank was also a victim.

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