Finalternatives – The chief fundraiser for convicted Ponzi schemer Thomas Petters unexpectedly pleaded guilty to fraud charges Friday, putting a halt to the trial of a hedge fund manager charged with aiding the scam.
Frank Vennes, who has repeatedly denied the charges against him, entered his new plea in St. Paul, Minn., court, just days before he and Arrowhead Capital Management founder James Fry were to go on trial for wire fraud, bank fraud, securities fraud, money launder and making false statements. That trial has now been postponed; a new date has not yet been set.
Vennes had faced 26 counts at trial but pleaded guilty to only two. He could get up to 15 years in prison on the aiding and abetting securities fraud and unlawful monetary activity convictions.