When a fraudster such as Marc Dreier, Bernie Madoff, Scott Rothstein and Tom Petters are arrested; one would expect that the crimes are finished.
Unfortunately, that plays into the hands of a new set of schemers - public servants!
In the Tom Petters fraud case, Doug Kelley and his firm Kelley Wolter was hired by Petters only a few days before the FBI raided his home and offices. Wolter was given a power of attorney proxy control over all of Petters assets. Including Polaroid, UBid, RedTag, Petters Magazines, Sun Country Airlines, PGW, PCI and Fingerhut.
Then, a federal judge in ILL ordered the assets seized by a federal appointed Receiver. This made Doug Kelley and friends panick. So a petition was made to the MN Federal Courts by Doug Kelley; who had worked the MN US Attorney's office and had a co-worker (and college classmate) who was now a Federal Judge in MN (Ann Montgomery)
Magistrate Judge Ann Montgomery took cronyism and corruption to a whole new level. She basically told ILL federal court to go fly a kite; and appointed her friend, colleague and co-worker Doug Kelley as the REceiver over Petters assets.
To put this conflict of interest in proper perspective, how would Ron Goldman had acted if the Judge removed the prosecutors and put Shapiro in as prosecutor and controller of OJ's assets.
It simply makes no sense.
Now the Trustee, including the US Trustee and Receiver Doug Kelley are running amuck. This past week, the SEC sued Quan of Acorn; for his participation in the schemes. But Doug Kelley was settling with Quan and giving him/his $14 million dollars at the same time.
Meanwhile, Doug Kelley had achieved cooperation of the Petters Creditors Committee that included Arrowhead /Jim Fry. Using the threats of prosecutions over them, the Trustee's and Doug Kelley got the Petters Creditors Committee to agree on a Coordination Agreement - where the Creditors/Victims of Petters would get $0 Restitution - None - Nadda - Zilch.
Easy to see why those who did not participate in the scheme were screaming. We actually went to the court hearing for approval of the Coordination Agreement and shook Doug Kelley's hand - telling him we were going to "kick his ass"
and here is how we do it -- THE TRUTH
While the US Trustee and Doug Kelley get the Creditors Committee approval of the illicit Coordination Agreement - it was hidden from everyone that Arrowhead was part of the scheme to defraud Petters future investors - to line their own pockets.
Now those facts/Truths have come out - Just this past week an Arrowhead Executive has plead guilty to knowing that the Petters investments were a scheme/artifice to defraud future investors.
This is not all that is transpiring. Speciously, Paul Traub - Tom Petters partner for a decade; his counsel as attorney and friend - has wound up with Polaroid. At the same time Doug Kelley has mentioned nothing about Fingerhut, Ubid, RedTag and other Paul Traub holdings.
Ain't that Strange!
You can see how much cronyism & corruption rogue federal agents will endeavor to hide their schemes by visiting
They are getting away with Grand Larceny and abusing public servant positions to do so!
