In court filings, federal prosecutors have indicated that they will recommend that Jim Fry, an associate of Tom Petters, serve 25 years in prison. The Star Tribune reports that Fry’s attorney, Joe Friedberg, wrote in a sentencing memo that Fry should be sentenced to six years. Friedberg based his letter on what other defendants in the case have received.
U.S. District Judge Richard Kyle will sentence Fry on Wednesday. In June, a federal jury found Fry guilty on 12 counts of fraud and making false statements.
The Pioneer Press reminds us that Fry was a dentist before he shifted into investment management. Fry, 59, ran a hedge fund, Arrowhead Capital Management, that invested with Petters for a decade. Fry himself received commissions totaling about $30 million. The receiver in the Petters' bankruptcy sought $105 million in "false profits" from Minnetonka-based Arrowhead.
There was no evidence that Fry knew the Petters operation was not legitimate. Petters is serving a 50-year federal prison sentence. He was convicted in 2009 of running the $3.5 billion Ponzi scheme.