Vlahos put up his homes as collateral for the lone Petters said he was using to buy merchandise from Circuit City. The loan went bad and Vlahos had to sell his homes to pay off his debt.
PCI associate Bob White took the stand and testified how he forged thousands of documents at the request of Tom Petters. In a taped conversation played earlier in the trial, Petters compared White to Quasimodo ringing the bells (of fraud) in PCI's belfry.
Bob White testified about the day the FBI raided PCI and came to his office. He agreed to cop a plea on the spot and cooperate with the investigation.
More recorded conversations were played in court today. We listened to a brainstorming session on the eve of the collapse of PCI. Petters gave a bizarre one-man, stream of consciousness rant that went on way too long. The witness held his head in his hands and yawned. If Judge Kyle had not called a break, my head would have exploded.
After the break, we heard another taped conversation in which a Petters talks with Bob White on the phone about fleeing the country on Bob White's boat.
Bob White explained that it wasn't easy to just take off... they would have to fuel the boat and load up with food and other stuff.
Tom Petters told White to Google "Marc Rich", the fugitive financier who was pardoned by President Bill Clinton. Bob White is sixty-eight years old and facing thirty years in jail.
Tomorrow will be a short day with more testimony from the Bob White.