The court has issued a ruling today stating that Tom Petters must forfeit his homes to the government immediately. His primary Lake Minnetonka Home is for sale at $6.3 million and is located next to Wayzata. It has been on the market for more than 1 year. Petters also owns a nearby Plymouth home where his girlfriend and their children live. Both houses are being seized by the US District Court judge assigned to the related the bankruptcy.
The judge in the case said that Petters appeal to allow his family to remain in the properties was not sufficient to show that they will not be able to find alternative housing. Proceeds from the sales of the homes will go to the victims of Petters’ $3.5 billion Ponzi scheme that was orchestrated by Petters Co, Inc. After a 6 week trial, Petters was found guilty of 20 counts of fraud. He is scheduled to be sentenced in April, where the prosecutors are seeking a life sentence, similar to Bernie Madoff.
