Former CEO Tom Petters, who is accused of running a more than $3 billion Ponzi scheme against investors, is now accused of hiding and diverting assets worth $50,000 after a court-ordered freeze of his property. Two of his associates are accused for doing the same.
A "special report" by receiver Doug Kelley said Petters diverted $50,000 from a lodge he owns in northern Wisconsin to an account through which he could direct payments to himself and others. Michael Catain skimmed nearly $14,000 in proceeds from the Bay Car Wash he owned in Excelsior, Kelley said.
In his report, Kelley said that Petters, through an unnamed brother-in-law, had $50,000 transferred from the Tam O'Shanter Lodge that Petters owns on Lake Superior to a personal account held by the lodge's manager just one day before a temporary restraining order was imposed on Petters' personal assets in early October.
Kelley said Petters used proceeds from the transferred funds to cover personal expenses in jail, including telephone time, and to provide $8,500 to girlfriend Tracy Mixon. Kelley previously had denied a monthly living stipend for Mixon.
He said the money from Petters "appears to be affirmatively attempting to circumvent" his previous decision, which was approved by Montgomery. The lodge manager agreed to transfer the remaining funds to Kelley.When most of the suspects were approached about the missing money or items, they returned it to Kelley, some even saying they "forgot" to include it in their assets. Right.
"When the investigator contacted Catain to confront him about the missing money, Catain checked himself into a hospital, complaining of a stroke," Kelley said in his report to the judge.These people are more sketchy than one can even imagine. No sympathy whatsoever.