Associated Press, Published November 09 2013
Final 3 defendants sentenced in Petters schemeST. PAUL — The final tledhree defendants have been sentenced in the $3.65 billion Ponzi scheme by Minnesota businessman Tom Petters.
U.S. District Judge Richard Kyle handed down a 7 ½-year sentence Friday to hedge fund manager Bruce Prevost for his role in misleading investors in Palm Beach Capital Management, a Florida hedge fund that put money into Petters’ scheme before it collapsed in 2008. He sentenced David Harrold, another principal in Palm Beach, to five years.
But another defendant, Michelle Palm, the former managing director of Arrowhead Capital Management in Minnetonka, got only probation.
The three sentencings brought to 126 ½ years the collective prison terms for the 13 people who pleaded guilty or were convicted for their roles in the Petters case. Palm is the only defendant who didn't receive a prison term or home detention.
Kyle cited Palm's assistance to the government's investigation and her genuine remorse and lack of profiteering from the fraud.