Skip to main content

Petters associate James Fry gets 17 years in prison

  • Author:
  • Updated:

A Minnetonka hedge fund manager and associate of Tom Petters was sentenced Wednesday to 17.5 years in federal prison, the Pioneer Press reports.

Fry, 59, was found guilty this summer on 12 counts of fraud and making false statements to the Securities and Exchange Commission.

Prosecutors recommended a 25-year sentence while Fry's attorney, Joe Friedberg, requested he should get six years or less.

The charges stemmed from Petters' $3.5 billion Ponzi scheme, the largest financial fraud in Minnesota history.

Fry ran Arrowhead Capital Management, which invested with Petters for a decade. The receiver in the Petters bankruptcy sought $105 million in "false profits" from the hedge fund.

Fry maintains he never knew that Petters was involved in fraudulent activity, the Star Tribune said.

The Pioneer Press points out that Fry was the only defendant connected to the case, besides Petters, to plead not guilty.

Petters was convicted in 2010 and is serving a 50-year sentence at Fort Leavenworth, Kan. He is expected to return to Minnesota next week to argue for a reduced sentence.

Next Up

Jaelyn Campbell

11-year-old girl missing from Mille Lacs County

Jaelyn Campbell was last seen in Onamia.

Screen Shot 2022-08-12 at 1.58.08 PM

2 ejected, 1 killed in crash that closed southbound I-35

The State Patrol says neither were wearing seat belts.

best buy

Best Buy makes job cuts weeks after warning of soft sales

The Richfield retailer has been dealing with a shift in consumer trends.

Screen Shot 2022-08-12 at 10.26.20 PM

Man makes 'vague comments' about Jewish people, smashes own car with club

It happened at a course that was founded as a Jewish country club 100 years ago.

Screen Shot 2022-08-12 at 9.59.07 PM

4 abandoned puppies found in a bucket in Willmar

The puppies were in good health when they were discovered.

Minneapolis police

Suspect of home invasion, murder in Minneapolis arrested in Wisconsin

There have been 57 deaths reported as homicides in Minneapolis this year.

Carson McCoy

Charges: Man stole handgun from house, fired at motorcyclists from car

A chaotic scene that led to a police chase unfolded after an alleged burglary in Ham Lake.

Mounds view 7 - crime scene

BCA's Uniform Crime Report shows violent crime in MN spiked in 2021

The report details violent crime trends in the seven-county metro and Greater Minnesota.

Screen Shot 2022-08-12 at 4.49.22 PM

Search for vulnerable man, 66, missing from Brooklyn Park

Alex Ramirez was last seen in the early hours of Thursday morning.

St. Cloud Times

St. Cloud Times writing staff hit by Gannett budget cuts

Mass layoffs were expected at Gannett-owned outlets across the country.


Pool company sued by AG for allegedly scamming homeowners out of $1M-plus

According to the lawsuit, 17 Minnesota homeowners were affected by this scam.