Petters Admits ‘Horrible Mess,’ Seeks Shorter Sentence

While all eyes are on the criminal trial of the former employees of the biggest Ponzi-scheme operator of all time, Bernard Madoff, the operator of another fraud is quietly—and tearfully—fighting to avoid dying in prison.

Tom Petters maintained his innocence following his 2009 conviction for running Minnesota’s biggest Ponzi scheme, even trying to take his battle to the Supreme Court. But in court Wednesday to seek a shorter prison sentence, he has finally conceded his guilt.

“This is my only chance to clear my conscience and soul,” Mr. Petters said, according to Minnesota Public Radio. “I made a horrible mess of things.”

News reports say Mr. Petters cried as he apologized to U.S. District Judge Richard Kyle for lying in his courtroom when he denied his guilt for his role in the Ponzi scheme.

“Maybe I thought the world revolved around me. But I lost my way big time. I am sorry I lied in your courtroom. It’s a horrible excuse, but I lied. And I am begging for forgiveness today,” Mr. Petters said, according to the Star Tribune.

The Star Tribune said Judge Kyle didn’t immediately rule on Mr. Petters’s request.

Mr. Petters, who was convicted more than three years ago and sentenced to 50 years in prison, says he was never told that he could have cut a plea deal with prosecutors that would have put him behind bars for 30 years. Prosecutors deny this and accuse Mr. Petters of lying to win the shorter sentence.

The lesser sentence could be the difference between life and death in prison for Mr. Petters, who’s 56 years old.

Mr. Petters was a well-known Minnesota businessman whose empire once encompassed Polaroid and Sun Country Airlines. He was arrested in 2008 and later found guilty of running a multibillion-dollar Ponzi scheme. His businesses have since gone into bankruptcy liquidation.

Write to Jacqueline Palank at [email protected]. Follow her on Twitter at @PalankJ.