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Petters associate, Larry Reynolds, to be released on bond

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Larry Reynolds, a 67-year-old Petters associate who pled guilty to helping Tom Petters in his alleged $3 billion Ponzi scheme, will be released on $2.5 million bond later today, according to the Star Tribune.

Let's hope this man doesn't have friends in really high places. We wouldn't be surprised if Reynolds disappeared into thin air without his passport.

The hearing was not on any public dockets and the Star Tribune received no explanation.

More for the Star Tribune:

Reynolds, a California resident with a second home in Las Vegas, Nev., appeared this morning for a bond hearing before U.S. Magistrate Judge Susan Nelson.

The 9:15 a.m. hearing was not on the public calendar, nor was it posted on Nelson's schedule outside her ninth-floor courtroom in Minneapolis. Assistant U.S. Attorney Timothy Rank was walking toward the courtroom with Reynolds' attorney, Fred Bruno, when they recognized a reporter and froze in their tracks.

Rank called Nelson's chambers on his cell phone and asked for a private meeting. He and Bruno turned around and entered the chambers area by going in through another judge's entrance.

Meanwhile, Reynolds waited impatiently in Nelson's courtroom. At one point, he asked a U.S. marshal when the hearing was supposed to take place. "9:15," the marshal replied. "Maybe somebody didn't get the memo."

About 10 minutes later, Rank, Bruno and Nelson entered the courtroom and approved Reynolds' release.

Neither Nelson nor the U.S. attorney's office responded immediately to messages seeking comment about why the hearing wasn't on the public docket.

As a condition of his release, both Reynolds and his wife surrendered their passports and put up the deed on their home to secure a $2.5 million appearance bond. Nelson told Reynolds he would be supervised by pretrial services in California.

Reynolds will be subject to home detention and electronic monitoring, and must pay for a portion of the costs. The share will be determined by pretrial services, Nelson said.