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From: ephender

Date: Nov-5

Yesterday on the stand, whistleblower Deanna Coleman described gambling away more than $600,000 in two days in January 2008 at Las Vegas casinos. Petters put Coleman's boyfriend on the company payroll from $100,000 dollars a year even though he did nothing for the company.

On the stand at the end of the day, restaurateur Dean Vlahos (pictured) described how he began investing with Petters in the early 2000s. They were on a flight back from Petters' home in Keystone, Colo. and Petters talked to him about investing. They reached a deal on the plane that would provide Vlahos with a 36 percent return on his investment. Vlahos said he originally asked Petters for 50 percent interest. Petters wanted to give him 10 percent. They settled on 36 percent.

Vlahos testified for years he received monthly checks from Petters with the payments from his investment. "There was never a problem," Vlahos said. He testified he kept investing more until he had invested $16 million with Petters by the fall of 2008.

Bankers testified they loaned Vlahos $10 million in January 2008 so he could invest in a separate deal with Petters. Petters had told the bankers the loan money would go to purchase Circuit City electronics. One of the loans was secured with a $3 million third mortgage on Vlahos' $9 million Deephaven home. The bankers testified the loans have never been repaid and are "seriously delinquent." Vlahos, who said Petters was "his best friend," took a circuitous route around the prosecution table in what appeared to be an attempt to avoid any eye contact with Petters.

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