Local Business

Whistleblower continues testimony in Petters trial

11/3/2009 11:20:02 AM

By Steve Karnowski

Associated Press 

ST. PAUL, Minn. -- The woman who prosecutors say blew the whistle on Minnesota businessman Tom Petters is testifying for a second day in his fraud trial.

Forty-three-year-old Deanna Coleman, of Plymouth, was vice president of operations at Petters Co. Inc. Under questioning by prosecutors Tuesday, she discussed dozens of bonus checks Petters paid to top employees in 2006 and 2007.

They were worth millions of dollars and drawn on the account of PCI, which prosecutors say was at the heart of a $3.65 billion Ponzi scheme.

Coleman testified the checks were funded by investors who thought their money was going toward merchandise sales.

Fifty-two-year-old Petters, of Wayzata, is charged with 20 fraud-related counts. His attorney says he's innocent and that Coleman and others carried out the scheme without Petters' knowledge.

The defense will cross-examine Coleman Tuesday afternoon.

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