Petters co-defendant Larry Reynolds sentenced to nearly 11 years in prisonBy AP
Tuesday, September 14, 2010
Petters co-defendant Reynolds gets nearly 11 years
ST. PAUL, Minn. — A judge has sentenced a disbarred attorney to nearly 11 years in prison for money laundering conspiracy in the $3.7 billion Ponzi scheme allegedly run by Minnesota businessman Tom Petters.
Larry Reynolds had faced up to 20 years, but U.S. District Judge Richard Kyle sentenced him Tuesday to 10 years and 10 months. Kyle showed him some leniency for pleading guilty and testifying against Petters.
The 69-year-old Reynolds admitted routing about $12 billion through a California shell company to help dupe investors into thinking they were financing merchandise deals. He testified he collected about $4 million to $5 million in commissions.
Reynolds was named Larry Reservitz before he testified in an 1980s East Coast fraud case and entered the witness protection program.
Tags: Corporate Crime, Fraud And False Statements, Minnesota, North America, St. Paul, United States