Petters Accomplice Reynolds Gets 10 Years, 10 Mos.

Larry Reynolds, the third Tom Petters co-conspirator to be sentenced this month, received 10 years and 10 months in prison after pleading guilty to money laundering conspiracy.

Larry Reynolds, one of Tom Petters' co-conspirators and a businessman from Las Vegas, was sentenced Tuesday to 10 years and 10 months in prison for his involvement in Petters' $3.65 billion Ponzi scheme.

The sentence includes supervised release of three years with special conditions, according to court documents filed after Reynolds' sentence was handed down by U.S. District Judge Richard Kyle in St. Paul.

Reynolds pleaded guilty to money laundering conspiracy in 2008.

According to court documents, Reynolds was in charge of Nationwide International Resources, a Los Angeles-based firm that Petters Company, Inc., used to launder money from investors.

The federal government accused Reynolds of helping launder more than $10 billion for Petters Company, Inc., through fake transactions for retail merchandise.

Last month, Reynolds was found in contempt of court and jailed for violating an asset-freeze order. He was taken into custody for participating in a “sham divorce,” through which he violated an injunction restraining him from transferring property within the receivership estate absent court approval.

Petters was found guilty in December of 20 felony counts relating to fraud, conspiracy, and money laundering, for orchestrating a $3.65 billion Ponzi scheme that spanned a decade. He was sentenced to 50 years in prison in April.

Reynolds is one of seven people who pleaded guilty to charges related to Petters' Ponzi scheme.

Deanna Coleman, who blew the whistle on the fraud scheme, was sentenced earlier this month to one year in prison.

Michael Catain-who faced up to 20 years in prison on a charge of conspiracy to commit money laundering-was sentenced Monday to seven-and-a-half years in prison.

Other Petters accomplices to be sentenced in the coming weeks (along with the dates and times of their scheduled sentencings) include:

¥ Robert White-September 15 at 8:30 a.m. White is a former consultant for Petters Company, Inc., who created phony paperwork to make false transactions look valid.

¥ James Wehmhoff: September 21 at 9:30 a.m. He's a former accountant of Petters Group Worldwide who pleaded guilty to charges that he withheld taxable income.

¥ Gregory Bell: September 30 at 10 a.m. He's an Illinois hedge fund manager who pleaded guilty to wire fraud.

¥ Harold Alan Katz: October 1 at 9:30 a.m. He's an Illinois accountant who created fraudulent banking transactions for Bell.