Frank E. Vennes, Jr. and associates, Fraud, Minnesota 2013

MINNEAPOLIS, MN – In a federal court order issued yesterday, United States District Judge Ann D. Montgomery approved the final distribution of payments to victims of the massive Frank E. Vennes, Jr. fraud scheme. The scheme, which was linked to the notorious Thomas J. Petters Ponzi scheme, resulted in the loss of millions of dollars for investors.

Vennes, a longtime associate of Petters, was sentenced to 15 years in prison in 2013 for fraudulently raising money from individuals and through hedge funds for investment in Petters Company, Inc. (PCI). The Asset Distribution Plan, which was approved in 2011, provided for the distribution of cash or assets to the victims and creditors of the Vennes Defendants.

Gary Hansen, the Liquidating Trustee, noted that the process of liquidating the Vennes assets was complex and challenging, involving multiple business entities, office buildings, apartment buildings, and other real estate, as well as an extensive art and rare coin collection. Despite the difficulties, Hansen expressed gratitude to Judge Montgomery for her practical and flexible approach, which allowed for creative problem-solving without substantial litigation or undue administrative expense.

According to Acting U.S. Attorney Gregory Brooker, while the distribution of payments cannot erase the years of financial hardship and emotional stress caused by the fraud scheme, it brings some measure of relief and closure to the victims. The total value of assets and cash distributed to victims and creditors through the Liquidating Trustee will total approximately $20 million.

The case, United States of America v. Frank E. Vennes, Jr., et al., was handled by the Civil Division of the U.S. Attorney’s Office for the District of Minnesota. The Vennes Defendants include Frank E. Vennes, Jr.; Metro Gem Finance; Metro Gem, Inc.; and numerous other entities involved in the Ponzi scheme.

The final distribution of payments marks a significant milestone in the ongoing efforts to hold accountable those responsible for the Petters Ponzi scheme and its related fraud schemes. As the investigation and prosecution of financial crimes continue, Grimy Times will provide updates and insights into the complex web of corruption and deceit that has affected countless individuals and families.

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