Esme's Blog

Tom Petters will remain in the Sherburne Co. Jail pending the appeal his attorneys plan to file.

As Jon Hopeman, Petters defense attorney said, “Mr. Petters will appeal with vigor and optimism.” Hopeman said Petters is “doing well” despite the verdict.

The appeal will likely focus on the fact that defense attorneys were not allowed to fully question Larry Reynolds about his criminal past. Reynolds was one of six who pleaded guilty in the case and testified against Petters.

Check out our Web site for some of the Petters exhibits.

One of the most interesting is the video produced by former KSTP anchor Joe Schmit in honor of Petters 50th birthday in the summer of 2007. Deanna Coleman’s describes Petters as a “brother.”

This was just 14 months before she went to the FBI and began wearing the wire.

Sorry for the lack of blog updates – I was swamped. The verdict came down at 4 p.m.. At 4:10 p.m. a stern-faced Tom Petters entered the courtroom. He greeted his attorneys with a handshake and a slight smile, but showed no emotion as the verdicts were read. Clearly his attorneys had prepped him for this. He had to get up in court after the verdicts (and without the jury present) and say he agreed that the judge, not the jury, could decide if his remaining assets will be forfeited. Right now the government estimates he has about $34 million in assets, they are all frozen. Petters was calm as he told the judge he waived his right to have the jury decide (after all they had just found him guilty on 20 counts, who would want them to make the call?) Judge Richard Kyle will almost certainly decide the assets should be forfeited. Prosecutor Joe Dixon said any forfeited assets should be distributed to the victims. Dixon added the assets are clearly not enough to cover the sweeping size of the $3 billion+ fraud.

Petters faces a maximum of 350 years in prison and a minimum of 30 years. Prosecutor Joe Dixon clearly hinted he will go for a very stiff sentence. But let’s face it, Petters is 52, anyway you look at it it’s likely a life sentence. What is really interesting is that the jury clearly liked Petters. The foreperson, Jolyne Cross, said, “I believe it was a slippery slope for him. I think he never intended to hurt anybody. I don’t think he woke up every day asking who am I going to take advantage of, I think he got into it and couldn’t get out of it. I believe he genuinely cared about his employees.”  

Yes they liked him. But not enough to acquit.

This is a true story.

After a day of waiting out the jury yesterday I had to pick up my daughter at a friend's house in Wayzata. It was 7 p.m. I was tired, (believe it or not, this endless waiting is totally wearing me out) and I don't know my way around Wayzata very well. From Interstate 394, I exited onto Highway 101 South. Working from memory I knew I had to make a left turn on McGinty Road, but McGinty comes up quickly and the fine folks in Wayzata, despite their ample tax base, clearly don't believe in street lights. I drove right past McGinty.

I quickly looked for a place to turn around, but southbound Highway 101, also known as Bushaway Road, is a curvy, narrow road. Go too far and you will soon be traversing Gray's Bay on Lake Minnetonka. The driveways that I thought about turning around in were too narrow and traffic was moving too quickly.

Just as I approached Lake Minnetonka, I saw a large and wide private driveway on the right. Relieved, I pulled in. Within seconds I realized it was Tom Petters' driveway. I didn't venture in. The home, in case you are interested and you can afford the $68,000 a year in taxes, is for sale for a reduced price of $6.25 million. (It's actually been reduced several times from the original $8.25 million asking price.)

Behold the MLS listing with accompanying slide show here.

Counting today, each member of the Tom Petters jury has earned $1,000 in fees for serving on the jury.

Here is how the payments work. For the first 10 days, they get $40 a day. Every day after that, they get $50 a day. They also get reimbursed for 55 cents per mile, they receive free parking and, for the four full days of jury deliberations, a free lunch. Those that live far enough out of town are also getting reimbursed for their stays in a St. Paul hotel.

Because the jurors have earned in excess of $600 in fees, they will be getting a federal tax 1099 form at the end of the year. Still, not a bad deal!

Tom Petters attorneys arrived at Federal Court to pay a visit to their client who is being held in a cell on the sixth floor awaiting the verdict.

I asked defense attorney Jon Hopeman, "How is Mr. Petters holding up?" Hopeman responded, "Mr. Petters is peachy." Defense attorney Paul Engh added, "He's fine."

Once again a day has almost passed with no question, no word from the Tom Petters jury. If jurors leave at 4:30 without a verdict they will have deliberated 24 hours over four days. For reporters the wait is stressful. We know we will get less than 10 minutes from the time we get word to the time the verdict is read.

Somewhere on the 6th floor, in a US Marshal's cell, Tom Petters is also waiting. His life, as his own defense attorneys admit, is on the line.

According to Judge Richard Kyle, jurors have not been told that after they reach a verdict they may have to continue deliberating on whether Tom Petters has to forfeit $34 million in assets.

Apparently Petters, if convicted, can decide if he wants the jury to decide the forfeiture issue or if he wants the judge to decide. If the jury decides the forfeiture, the proceedings would likely take place the day after the verdict comes down. If the judge is the one making the decision, then the forfeiture phase could be postponed for a month or two.

Among the assets listed are several bank accounts, a lodge in Cornucopia, Wis. and his home in Wayzata that the receiver in the bankruptcy case has not yet sold. His homes in Florida and Colorado have already been sold by the receiver. The proceeds are being held pending the outcome of this case.

What nobody seems to be able to explain is what happens if Petters is acquitted. The burden for forfeiture is a lesser one than in the criminal case. The criminal case burden is "beyond a reasonable doubt," while the forfeiture burden is the same as in a civil case, "a preponderance of the evidence."

If the jurors do end up having to decide the forfeiture, can you imagine how the jurors are going to feel, believing they are done and then having to decide this whole other aspect of the case?

As for the jury, no word yet today, although several reporters, including myself, thought the fact that they left early yesterday (about 15 minutes early) might be an indication that they had reached a decision and might just want to sleep on it.

Looks like I am going to be wrong again.

Jurors in the Tom Petters trial have gone for the day, breaking a few minutes early at 4:15 p.m. There were no questions for the judge, no insight into what they might be thinking.

Over the weekend, I talked with Ron Meshbesher, the prominent Twin Cities defense attorney, who said there is no truth to the old adage that the longer a jury goes, the better it is for the defendant.

But Meshbesher said, in his view, this case is one that on the surface favors the prosecution. And if that is the case, perhaps it is true that the longer it goes, the better it is for Tom Petters.

There has been no word form the jury yet today. No questions for the judge, nothing.

It is impossible to guess what issues may be taking the most time. They have access to all the exhibits, including the hours of tape made by whistleblower Deanna Coleman.

Petters is being held in a cell on the sixth floor in the offices of the U.S. Marshal. If there is no verdict today, the jury will have deliberated approximately 17 hours over three days.

In an unusual set up, the judge has allowed for a closed circuit TV viewing of the verdict when it comes down. The camera will be trained on the defense table so reporters can see Tom Petters as the verdict is read. Right now the camera is on the courtroom empty, just waiting on a decision to come back.

The chatter in the room where nearly 20 reporters are waiting for the verdict in the Tom Petters case has drifted to Tiger Woods and the Salahis, the couple who was able to get passed Secret Service, into the White House State Dinner.

With Tiger, my thoughts are -- if anyone else would have taken out a fire hydrant and impaled their car on their neighbor's tree what would have happened? First a blood alcohol sample would have been taken. One was not taken from Woods. We will never know if he was under the influence of drugs or alcohol. And how about the refusal to meet with police? This case reeks of special treatment.

As for the Salahis, if they had not looked the way they did, would they have been able to get into the White House? I don't think so. Even the Secret Service can be swayed by the right look versus the right credentials.