theftlossdeduction.com

Tom Petters ran a Ponzi scheme which promised fat returns to investors who lent him money to buy non-existent surplus merchandise and resell it.

04/22/09 - BY SUSAN CAREY

MINNEAPOLIS -- Bernard Madoff bilked the public with fictitious securities transactions. Tom Petters, prosecutors allege, gulled his victims with nonexistent DVD players and flat-screen TVs.

Among the spate of alleged scams that have come to light in recent months, the $3.5 billion one that Mr. Petters is charged with is among the most unusual. The Minnesota businessman promised fat returns to investors who lent him money to buy surplus merchandise and resell it to famous retailers like Wal-Mart Stores Inc.

"In fact, there were no such purchases or resales," says a federal indictment. It says both were faked. Mr. Petters ...

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