Whistleblower recounts money problems at Petters

By STEVE KARNOWSKI Associated Press Writer

ST. PAUL, Minn. (AP) - The longtime aide of a businessman accused of operating a $3.65 billion Ponzi scheme is testifying that he was struggling to find new money and hold off nervous investors.

Deanna Coleman is one of the prosecution's star witnesses in the fraud trial of Minnesota businessman Tom Petters. Coleman, an officer in his company, testified Monday about going to federal prosecutors in September 2008 to blow the whistle on the alleged scheme.

Afterward, she returned to Petters' headquarters wearing a wire.

Coleman said Petters Co. Inc. owed investors hundreds of millions of dollars that was coming due soon, but the company had no new money in the pipeline to pay off.

Petters, 52, maintains his innocence.