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.
