Petters Trial Day 16

November 19, 2009

Day 16 in the trial of Tom Petters.

Defense lawyer Jon Hopeman continued the direct examination of Tom Petters. Hopemen asked Petters to explain some of the incriminating remarks we heard on the recordings and testimony of witnesses in the trial.

Petters said the business was filled "with nonsensical excuses and stories".

Petters said that faked purchase orders was the way they did business at PCI.

He also admitted to having been prescribed Adderall and Klonopin for his ADD. He said the dosage was tripled and made him sound "like a maniac" on the tapes.

Petters got way emotional when Hopeman asked him about the day Petters resigned. He leaned back in his chair and choked back the tears.

Assistant U.S. Attorney Joe Dixon began the redirect examination by asking Petters about his tax returns that "year after year" showed "zero income".

Petters was evasive about the tax returns, blaming his accountant. He claimed he just signed the tax returns.

Dixon asked Petters whether he had sex with Deanna Coleman. At first, Petters refused to answer the question, but admitted he had a sexual relationship with her in Italy.

Dixon asked Petters if he had told his personal assistant, David Margolis that he had sex with Deanna Coleman in a gondola. Petters said yes.

Dixon hammered away at Petters on his business dealings and the statements he made on tape and in emails that indicated he knew PCI was a fraud. Dixon told Petters he had "Ponzied" his father-in-law. Petters denied knowing he was running a Ponzi scheme.

When Dixon asked Petters about his Bentleys, Petters replied that he was not a "Bentley guy" after Dixon showed a receipt for one of posh cars, Petters said, "okay, I'm a Bentley guy".

Petters lost his cool at times as Dixon pressed Petters to admit PCI was a fraud that kept his other companies afloat. Petters admitted PCI was "the cash cow for all my companies" and that he was "involved" in the scheme, however he still maintained that he was not responsible for the scheme.

Dixon asked Petters if his former associates were "instruments of darkness", borrowing the phrase Jon Hopeman used in his opening statement. Petters said, "yes, they were my instruments".

Dixon said Petters former associates had made millions of dollars and Petters took $400 million. Petters said, that's what got put in my companies".

There will be more testimony from Tom Petters and very likely closing statements tomorrow.