Former CEO of ubid.com is in Prison. He stands accused of defrauding investors out of $3 Billion over the past 14 years.

On October 8^th, a federal judge ordered Tom J. Petters, to be held behind bars. Court docs allege Petters began a scheme in order to commit Fraud to “Support his Extravagant Lifestyle” For the copy of the FBI affidavit filed in connection with the Peters indictment visit Washington Post

Bail has been denied and his assets of more than $1 Billion have been frozen by the Feds.

Full story at Washington Post

The whistleblower is Deanna Coleman, the former VP of Operations of a financing unit within Petters Group.Deanna Coleman was paid $300k a year and received hefty bonuses. Coleman did work out a deal for the information provided. No indication of any of the other employees receiving any deals.

According to the Affidavit. The special Agents on the case uncovered an elaborate scheme between Petters and employees. It provides the time line, the creating of false documents, the Bank Wires and Petters plan to flea in the event his fraud scheme was discovered.

Petters had no limits, defrauding investors by creating False PO’s (Purchase Orders), illegal Mortgage deductions and of course allegedly defrauding the IRS.  

This scheme is claimed to be motivated by Greed. This scheme has had an impact on so many Investors and Institutions.

The makings of a Hollywood Movie! I invite you to read the affidavit.

The Full Affidavit

I will take this time to remind you to govern yourself according to the law. Not understanding or knowledge of the laws is no excuse for breaking them. Build a relationship with a reputable White Collar Crime Law firm. Educate yourself and always seek counsel for any financial moves or contracts. Keep close eye on your employees. As your business grows so does the amount of liability and responsibility you have as an employer. Have Confidentiality Agreements drawn up and No Compete Contracts as well as a Liability Clause.

I do have these for our employee in place. At first I created a set myself, with the use of the Internet and my law books. Invest in your own set of Business and US Federal Law Books. You cannot ever just relay on the word of your attorney, no matter how experienced and reputable he/she may be. No one will care for you if you end up in a predicament.

Greed is an ugly partner. Regardless of what you do in life, take pride and honor yourself.

I plan on following this case and report to you as it unfolds. I have many interesting stories to share with. Several Power Sellers on eBay failed as sellers but make millions promoting eBay and promoting their downfall.

You may find it useful to have the link to:

 Title 18, United State Section 1341 and 1343

Search of the United States Code

More to come……

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