Wednesday, November 4, 2009

REUTERS
Whistle-blower in Petters case wrote company checks
The whistle-blower in the $3.65 billion fraud trial of accused Ponzi schemer Tom Petters testified on Wednesday that she wrote more than $1.2 million in Petters company checks to her boyfriend and brother.

Under cross-examination from Petters' defense attorneys, Deanna Coleman also testified that she had put her boyfriend on the company payroll with a $100,000 a year salary and that Petters was aware of it. The boyfriend received $300,000 in checks from the company while her brother received $930,000 as

Coleman tried to hide income during a divorce. In addition, defense attorneys presented evidence showing that Coleman spent more than $600,000 of investors' money on gambling during the Consumer Electronics Shows in Las Vegas in 2007 and 2008.

The full story is here.