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Article: PETTERS TRIAL: DAY 2; Witnesses saw signs of fraud in 2000; With a subsidiary struggling to repay debt, Petters wrote checks that bounced, a GE exec testified.(NEWS)
- Article from:
- Star Tribune (Minneapolis, MN)
- Article date:
- October 30, 2009
CopyrightCOPYRIGHT 2009 Star Tribune Co. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: DAVID PHELPS; STAFF WRITER
Tom Petters and his organization nearly imploded eight years before federal authorities were told that he was at the center of a huge Ponzi scheme.
In the first day of testimony at Petters' trial in St. Paul, executives from General Electric Credit Corp. (GECC) and big-box retailer Costco told jurors Thursday that they determined in 2000 that Petters had created false documents to stave off an impending financial catastrophe. The documents included purchase orders for electronic goods and copies of bogus checks.
The witnesses told of a $50 million line of credit with GECC set up by a subsidiary of Petters Co. ...