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New York (HedgeCo.Net) - South Florida-based hedge fund Palm Beach Finance Partners LP says it lost more than $1 billion to the company run by famed fraudster Tom Petters.
Petters headed Minnesota-based Palm Beach Finance Holdings Inc. before being charged in September with money laudering, obstruction of justice and mail and wire fraud that were used to fund his extravagant south florida lifestyle.
Petters allegedly masterminded a scheme that bilked over $3 billion out of trusting investors by setting up fake companies in which he supposedly was invested in. Petters has been slammed with lawsuits in recent months, forcing a judge to freeze any further lawsuits until things can be sorted out.
According to the Palm Beach Post, five investors in Palm Beach Finance Partners have appointed New York law firm Sadis & Goldberg to probe deeper into whether the hedge fund properly managed their funds and whether or not the highly recommended due diligence was performed.
Petters, who currently resides in a Minnesota jail far from his $9 million oceanfront mansion, insists he is innocent. He currently has over 30 civil suits pending against him.
Julie Scuderi Senior Editor for HedgeCo.Net Email: julie@hedgeco.net
West Palm Beach (HedgeCo.net) - Holiday airline Sun Country filed for bankruptcy yesterday, just 3 days after the arrest of investor Thomas Petters, founder of Petters Group Worldwide, the firm that owns Sun Country among other investments.
Petters was charged with mail and wire fraud, money laundering and obstructing justice.
"We were forced to take this action as a result of recent events at Petters Group Worldwide," said Sun Country Chairman and CEO Stan Gadek. The airline said that it would continue to fly its regular schedule.
A federal judge in Minneapolis order Petters to be held without bail after a taped phone conversation revealed that the disgraced entrepreneur planned to leave the country. A hearing is scheduled for Tuesday.
Petters has stated that he plans to fight to be released from custody and maintains his innocence.
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Telegram.com - Convicted swindler Amit Mathur will remain in federal custody for the next three months, a federal judge ruled today.
In denying Mr. Mathur’s bid to be released on bail until his sentencing, scheduled for Sept. 5, U.S. District Court Judge F. Dennis Saylor IV said there were too many reasons to believe the former Shrewsbury investment counselor might flee the country to avoid spending as much as 14 years in a federal prison.
Mr. Mathur, 37, was convicted May 15 on 20 counts of mail and wire fraud after a two-week trial in which he was accused of stealing or misappropriating some $13 million from people who had invested in a hedge fund he established in 1999 called Entrust Capital Management. Among the victims of the fraud were prominent city businessman David G. “Duddie” Massad; his daughter, city lawyer Pamela Massad; and Mr. Mathur’s uncle, Alok Mathur of Westport, Conn.
Amit Mathur’s parents had offered to put up their home, valued at $580,000, and more than $300,000 in retirement savings, and family friends had pledged to come up with any additional money to cover the pre-sentencing bail sought by Mr. Mathur.
Judge Saylor, however, said one aspect of the situation deeply troubled him.
“It gives me great pause and weighs heavily in my decision,” the judge said, that a family member was among those from whom Mr. Mathur stole money.
Alok Mathur testified during the trial that he lost $530,000 he had invested with his nephew.