Petters resigns as CEO


Tom Petters, CEO of Petters Group Worldwide, resigned effective immediately, according to the Star Tribune. His resignation comes after a federal raid last week of his home and business headquarters. "The FBI says it has recordings of Petters discussing the need for more capital at his financially stressed company. The FBI says Petters repeatedly admits hoodwinking investors in the recordings," according to Minnesota Public Radio.

Details after the jump.

Tom Petters resigned Monday as chairman and chief executive of Petters Group Worldwide in the wake of a federal criminal investigation into allegations of investor fraud.

Petters made the announcement in a meeting with employees at his company's Minnetonka headquarters.

"Events of the last few days have made it impossible for me to continue as the leader of these companies. My first concern is that these companies continue to go forward and that you as employees feel secure about working here," Petters said.

Petters' resignation is effective immediately. The company said he will no longer be involved in day-to-day operations of Petters Group and indepedent operating companies, including Polaroid and Sun Country Airlines.

Attorney Doug Kelley of the Minneapolis firm Kelley & Wolter has been retained by Petters Group Worldwide to assemble a management and legal team to oversee operations of the companies.

Petters Group headquarters, Petters' home and several other locations last week were served with federal search warrants in a coordinated raid by agents looking for evidence involving an alleged fraud operation.

Looks like Petters got himself into quite a fix. His legacy is quickly spiraling out of control.

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