Three Petters associates sentenced for ponzi scheme roles

Author:
Updated:
Original:

The final three people with ties to the Tom Petters Ponzi scheme were sentenced on Friday.

Bruce Prevost and David Harrold of Palm Beach Capital Investments and Michelle Palm of Arrowhead Capital management in Minnetonka were all sentenced on Friday.

The Pioneer Press reports that Prevost was sentenced to 7 1/2 years in federal prison, while Harrold received a five-year sentence.

Investors in Palm Beach Capital Management took about one-third of the total losses in the Petters scam. Both pleaded guilty to four counts of securities fraud.

Palm dodged prison time and received three years probation. She pleaded guilty to providing false information to investors and making false statements to the SEC.

Her testimony previously helped convict Arrowhead founder, James Fry on fraud charges related to the scheme. Fry was sentenced to 17 1/2 years in prison last month.

Petters, 56, is currently serving a 50-year sentence at a federal facility in Fort Leavenworth, Kan. for running a $3.65 billion Ponzi scheme, the largest financial fraud in Minnesota history. He'll be eligible for release in 38 years.

He recently returned to U.S. District Court in St. Paul to request a reduced sentence.

After more than five years, Friday's sentencing hearings wrap up the criminal cases related to the Petters' scheme. Federal authorities raided the headquarters of Petters Group Worldwide and the homes of top company executives on Sept. 24, 2008.

Next Up

Randy Dobnak

Michael Brantley, Astros pound Twins pitching in series finale

Randy Dobnak's six earned runs was part of a long afternoon.

Seimone Augustus

Lynx to retire jerseys of Seimone Augustus, Rebekkah Brunson next season

The former Lynx stars were a key piece of their four WNBA titles.

police tape, crime scene

Rushford police officer fires gun during report of a restraining order violation

The incident occurred on Highway 30 near the Rushford Municipal Airport.

lake water

18-year-old dies from drowning in Quarry Park

The incident is one of several drownings to occur in Minnesota in recent weeks.

Screen Shot 2021-06-13 at 8.28.44 AM

College pitcher from MN gets new prosthetic arm after his was stolen

A tough luck story turned out very positive for the Hawley native.

vaccine, covid

MN saw decline in routine child vaccinations amid pandemic

The CDC study looked at Minnesota and nine other states.

Water

Child hospitalized after drowning in Ham Like

Their current condition is not known.

pontoon

Man dies after falling from pontoon, being swept under boat

Friends believe he struck the motor while under the boat.

Related

Feds to seize Twin Cities home tied to Petters' Ponzi scheme

The U.S. Attorney's Office was given the go-ahead Wednesday by a federal judge to seize a Minnetrista home that was purchased with proceeds from the Tom Petters' Ponzi scheme. The house until recently was occupied by Allen Munson, the ex-husband of former Petters' associate, Deanna Coleman.