BREAKING DIVORCE NEWS: Remember the Tom Petters case? We spoke about it back last year and you can read about it here. He was Minnesota’s answer to Bernie Madoff and I think after his case was tried, he was convicted and will spend upwards of 50 years in prison.
Well, now I was sleuthing the Internet and came across a follow up to that story that might interest you. Turns out that one of the witnesses against Petters, a former pal, was busted for violating a court order freezing all his assets. The pal basically conveyed all his earthly possession to his wife in what is being called a “sham” divorce, in violation of a court ordered freeze of said assets. Says the Star Tribune:
A key prosecution witness against Ponzi-scheme kingpin Tom Petters will stay in jail until his sentencing next month after a federal judge revoked his bail Tuesday for violating a court-ordered freeze on his assets.
U.S. District Judge Richard Kyle said Larry Reynolds should have known better than to sign a divorce settlement last December giving virtually all of his assets to his wife, including a house in Los Angeles.
Reynolds helped defraud investors in the $3.65 billion Ponzi scheme, but in 2008 pleaded guilty to money laundering and testified last year against Petters, who has been sentenced to 50 years in prison for the fraud.
So Larry’s been thrown in prison as well and he is awaiting his fate once the judge gets through with the contempt motion against him. Larry’s lawyer claims that his client signed the divorce settlement without attorney advice.
It doesn’t matter anyways because Larry himself is also facing a “lengthy jail sentence” according to the Tribune. This time for his role in the ponzi scheme, not the contempt with regard to the asset freeze.
See the tangled web we weave?
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