Sunday, September 19, 2010

Petters Group World Wide - Gottex Fund Management - Petters Group. Tom Petters Fraud on the Courts

Zurich Sure Loves my Blogs on the Tom Petters Bankrupcty Corruption. And my Posts on Bankruptcy Corruption involving Paul Traub and Douglas Kelley.

YOUR Money is IN Switzerland !!


" NEW YORK -(Dow Jones)- Alleged fraud at Petters Group Worldwide has already led to the ouster of the private company's chief executive, but it's also causing pain for several hedge funds around the world.

Already, Swiss fund-of-hedge-funds manager Gottex Fund Management has cited exposure to Petters, Minnetonka, Minn., as one of the reasons it's closing its fund of funds that does asset-based direct lending to companies.

The alleged fraud at Petters, which was founded by Tom Petters, goes back to the 1990s and involves Petters Co. Inc., a subsidiary of Petters Group.

The Federal Bureau of Investigation has been investigating allegations that Petters' managers produced fake documents and showed them to their investors stating they were reselling goods at a profit.

Petters Group's Tom Petters, who denies the charges, resigned as chief executive Monday.

Hedge funds are involved in a few ways: Some may be investors in Petters, and others, like Gottex, have investments in hedge funds that lent money to the company through their asset-based lending funds.

Petters, a holding company that owns brands such as Polaroid, Sun Country Airlines, Fingerhut and Mr. Coffee, was founded in 1988 and has about $2 billion in annual sales.

Toronto-based Northwater Capital Management Inc., an $8 billion-plus asset manager with more than $4 billion in hedge fund of funds, also disclosed this week that some of its funds of funds are exposed to Petters.

"If the allegations are true, NCMI believes that it will have a material negative impact on the net asset value of the trusts," Northwater said in a Monday statement.

Two separate Northwater funds had 4.3% and 2.5% of their assets invested in Petters.

A Northwater spokesman said the company wouldn't comment beyond the release. Northwater and Gottex, which make direct investments to several different individual hedge funds, would not name the funds that were exposed to Petters.

However, some individual hedge funds have already taken Petters to court.

One hedge fund, Minneapolis-based Interlachen Capital Group, sued Petters on Monday in federal court, saying it gave Petters $60 million to buy electronic equipment that was used for another purpose.

Petters offered "imaginary televisions as collateral," according to Interlachen's complaint.
Last month, according to court documents, another asset-based lender, Acorn Capital Group of Greenwich, Conn., sued Petters in New York's Southern District, demanding money for one of its loans.

The suit names Thomas Petters himself, but not Petters Group.

Gottex has been forced to temporarily halt redemptions from its ABI Fund until it is able to assess the value of the portfolio, a spokesman confirmed, citing the Petters Group exposure as the main reason.

"As soon as more information regarding the Petters Group-related investments becomes available, the ABI Fund will endeavor to bring the period of suspension to an end as promptly as possible," the group said in a statement.

Gottex's asset-backed lending fund predominantly invests in hedge funds that make direct loans to borrowers, taking control over their assets as security. Its asset-backed investing fund does the same thing, but also invests in some of the companies it makes loans to.

Petters Group is no stranger to dealing with hedge funds.

In October 2006, Andrew Redleaf's Minneapolis-based hedge fund Whitebox Advisors went in on a deal with Petters Group to buy Sun Country Airlines, with each side taking a 50% stake.

Petters, through its Petters Aviation affiliate, bought all of Whitebox's stake by November 2007. The airline has struggled since, along with the rest of the industry. "


Source of Post

http://judicialmisconduct.blogspot.com/2008/10/tom-petters-international-scammer.html


New York Corruption is Connected to the Tom Petters Massive Bankruptcy Fraud and Corruption. Check out More on the Bankruptcy Corruption Surrounding the Tom Petters Companies.


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