FINANCIAL SCHEMER GETS JUSTICE
A federal judge has approved a final distribution of payments to victims of Frank E. Vennes, Jr.’s massive fraud scheme, which netted victims a total value of approximately $20 million.
According to Acting U.S. Attorney Gregory Brooker, ‘Although nothing can erase entirely the years of financial hardship and emotional stress caused by this massive fraud scheme, we hope that through the Liquidating Trustee’s administration of the Asset Distribution Plan victims have experienced some measure of relief and closure.’
Gary Hansen, the Liquidating Trustee, noted the many complexities in liquidating Vennes’ assets, which included multiple business entities, office buildings, apartment buildings, and other real estate, as well as an extensive art and rare coin collection.
‘This has been a long and challenging process,’ Hansen said. ‘We appreciate Judge Montgomery’s practical and flexible approach, which permitted us to resolve issues creatively and without substantial litigation or undue administrative expense.’
Vennes was sentenced to 15 years in prison on October 18, 2013, for fraudulently raising money from individuals and through hedge funds for investment in Petters Company, Inc. (‘PCI’).
In January 2011, the Court issued an order approving an Asset Distribution Plan that provided for the distribution of cash or assets to the victims and creditors of the Vennes Defendants.
The Vennes Defendants are: Frank E. Vennes, Jr.; Metro Gem Finance; Metro Gem, Inc.; Grace Offerings of Florida, LLC; Metro Property Financing, LLC; 38 E. Robinson, LLC; 55 E. Pine, LLC; Orlando Rental Pool, LLC; 100 Pine Street Property, LLC; Orange Street Tower, LLC; Cornerstone Rental Pool, LLC; 2 South Orange Avenue, LLC; Mandan Properties, LLC; Century Apartments, LLC; Youngstown Holdings, LLC; Metro Development Properties, LLC; Grace Offerings of St. Paul, LLC; Project Riverwatch, LLC; Friends of Hope Academy, LLC; Plando, LLC; Art Group, LLC; and Metro Gold, LLC.
This case was handled by the Civil Division of the U.S. Attorney’s Office for the District of Minnesota.
The case is captioned United States of America v. Frank E. Vennes, Jr., et al. Case No. 8-cv-5348 (ADM/TNL).
Key Facts
- State: Minnesota
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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