Last Updated: August 6, 2010 by ldanielson

Who Gets Petters Scheme Money?
Fox9 News Investigates December 10th, 2009 | Link to article

Fox 9 Investigates - Stop The Petters Scam Story

Fox 9 Investigates - Stop The Petters Scam Story

“Where’s the Money” ads ran in Strib and PiPress”

MINNEAPOLIS – Now that Tom Petters is convicted of running a $3.5 billion investment scheme, many are wondering what happen to all the money and if investors will get it back.

Open up the Pioneer Press and you’ll see the quarter page ad, ‘Where’s the Money? Part eleven.

The “where’s the money” ads were created by Bill Hillsman, who says no one is following the money trail.

“A lot of money ends up in the coffers of government and the professionals but very little money getsback to the people who were really victimized in these situations,” Hillsman said.

“Where’s the money refers to where’s the 3.5 billion dollars that they government says went out the window,” says Garrett Vail.

Vail is a bankruptcy attorney who’s the front man behind the Petters Scam ads, but he won’t say who’s paying for the ads or a slick website, laying out the complicated web of key players in the Petters drama. Including Doug Kelley, the court appointed receiver in charge of selling Petters assets and raising money for victims.Kelley is keeping a book with the ads so he can follow what’s being said.

“I think they are riddled with lies and false innuendos,” Kelley told Fox 9.

The ads question how Kelley, a former assistant U.S. attorney got so much power in deciding how Petters’ assets are distributed.

Allegations also made in a lawsuit filed by Ritchie Capital Management, a Chicago-based hedge fund that lost $100 million in the Petter’s Ponzi scheme. The endgame is who will be first in line to get Petters assets, whether they’re big time hedge funds, or the small investors.

Kelley says regardless, they’re all in for a long wait.

“This has been a transparent receivership and we have done right by them and we’re not finished yet and we ask for their patience.” Kelley said.

Tags: , , , ,