Federal Court To Decide Whether GE Capital Complicit In Ponzi Scheme

[laserhaas]

Source: Forbes

By December 8, 2000, GE Capital Corporation (GECC) had received nearly $50 million that it had loaned to Petters Capital, a company that specialized in buying bulk lots of merchandise from various retailers and then re-selling them to large, big box, distributors like Costco and Walmart. GECC had grown concerned over Petters’ banking habits, late payments, unscrupulous owner and the discovery that the underlying assets were fraudulent. Getting the money returned must have been a huge relief.

GECC grew suspicious enough to place a call directly to Costco, one of the vendors reported on Petters Capital’s receivables. Costco had no record of the invoices that Petters had reported to GECC as outstanding. Paul Feehan, an executive of GECC at the time, got on the phone and started screaming at Petters, according to a deposition given in October 2013, “This is a fraud. This is all one, big fraud.” When things calmed down, Petters promised to pay back the loan along with all the substantial fees associated with it. After a few missed promises-to-pay, the final payment occurred and GECC went on its way to find new customers and Petters’ CEO, Thomas Petters, went on to continue building one of the largest Ponzi schemes in U.S. History.

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This month, U.S. District Bankruptcy Judge Paul G. Hyman, Jr. ruled that he would neither give summary judgement for GECC to dismiss the lawsuit, nor grant PBFB an outright judgement for damages from GECC. So on to trial they go

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According to Jeffrey Sloman, the former United States Attorney for the Southern District of Florida and now a private attorney who was called on as an expert by Mukamal, it looks like GECC would have faced criminal charges had he been at the helm and known about the Petters discovery. Sloman concluded, “… had I been presented with these facts while I was a prosecutor, I would have concluded that there is probable cause that GECC’s employees committed promotional money laundering and conspiracy to commit promotional money laundering, and that GECC could be held criminally liable for the illegal acts of its employees, and therefore, I would likely have sought an indictment.” Sloman knows a good Ponzi scheme when he sees one, he worked on the Scott Rothstein case in South Florida.

Read more: https://www-forbes-com.cdn.ampproject.org/c/s/www.forbes.com/sites/walterpavlo/2017/07/06/federal-court-to-decide-whether-ge-capital-was-complicit-in-ponzi-scheme/amp/

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I own the Petters-Fraud.com website, since fighting from 2006, to get Petters and others arrested for national fraud schemes.

GE, JP Morgan, Goldman Sachs and Bain Vapital are all involved in the Petters Ponzi fraud..

but none of them are ever being held accountable.

[laserhaas]

1. By the way, the former fed prosecutor "I would have"

remarks dont sound all that brilliant.

Being Rothstein was linked to Petters, via Discala

[laserhaas]

2. My email...today...to Mr. Mukamal

This is to make you aware of certain facts apropos to your current efforts against GE.

1. The Rothstein case is directly linked to Petters via Discala (possible reason of homicide of Rothstein's associate).

2. It was my reporting on Palm Beach Links that forced the shutdown of their website.

3. There is a an inside witness in the Palm Beach case no one has ever bothered to contact (even though we gave details to both SEC Dallas and S.Fl.)

4. Steve Cammack was the real cheese behind Prevost & Harrold

5. The failure to adress the Bill Cawley part of this saga is telltale of the proverbial "fix" being "in"!

(just in case you are unawares, Cammack started PBL with $50 million from Cawley and they failed to disclose the fact PBL immediately loaned $52 million to Cawley and allowed Bill management fees {which your auditors should have turned up})

just sayin......

[br][hr][br]

Already received acknlowedge reception...email

[ancianita]

3. Re: Sloman's had I been presented with these facts while I was a prosecutor, I would..."

Doesn't that sound disingenuous to you?

How does a prosecutor not have sufficient evidence for probable cause when his original investigation is along the same lines.

This "road" of justice seems littered with as many culprits who withhold evidence as those who don't "discover" evidence.

[laserhaas]

4. Of your noted paradigm, we are all too well familiar

It sucks that prosecutorial misconduct is being done on multiple levels