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Petters' bid to suppress comments to FBI denied
A magistrate said Petters volunteered information and wasn't under arrest at the time.
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Minnesota businessman Tom Petters appears to be losing his fight to suppress comments he made to authorities last fall as they confronted him in his hotel suite in Las Vegas.
A U.S. magistrate judge in St. Paul on Tuesday denied Petters' motion to suppress the half-hour interview he conducted that morning in his bathrobe at the Bellagio, reasoning that Petters freely volunteered information, clearly wasn't under arrest at the time and didn't need to be read his Miranda rights.
Magistrate Judge Arthur Boylan's 19-page report and recommendations on Petters' pretrial motions now goes to U.S. District Judge Richard Kyle, in charge of Petters criminal case. Federal judges generally accept such recommendations but have the option to make different findings.
Petters' attorney, Jon Hopeman, said Tuesday afternoon that he hadn't seen the decision yet and couldn't comment. He didn't respond after the Star Tribune sent him a copy by e-mail.
Petters, 51, of Wayzata, has pleaded not guilty to a 20-count indictment that he led a $3.5 billion Ponzi scheme for more than a decade, wiping out investors across the country and overseas. He remains in the Sherburne County jail awaiting trial, now set for September.
During the half-hour talk in his suite, Petters told federal agents "I'm in charge, I'll bite the bullet," according to court documents.
The conversation took place the morning of Sept. 24 as agents were executing search warrants on Petters' business in Minnetonka. Two FBI agents, an agent for Nevada Gaming Control and a hotel security manager took the back stairs to Petters' suite that morning and knocked on his door about 7 a.m.
Petters, gripping a cell phone, invited them in, according to court documents. The group sat at a dining table, and an FBI agent informed Petters they suspected he was running a fraud scheme. Petters "maintained a pleasant demeanor and appeared relaxed," according to court documents. He spoke briefly with an attorney on the cell phone and the agents left about 7:30 a.m.
Petters was arrested Oct. 3 in his Wayzata home.
In addition to rejecting the suppression of Petters' statement, Boylan also rejected his challenges to the searches of his home and business in nearly every respect. However, Boylan agreed with Petters that the seizure of a Ruger firearm should be suppressed, and that it and various watches and $3,101 should be returned to Petters' estate, which is in receivership.
Jennifer Bjorhus • 612-673-4683
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