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Newspaper intervenes in Petters case
The Star Tribune files motions to get dismissal and sanctions motions and materials opened to the public.
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Attorneys representing Tom Petters, who is accused of swindling investors, have filed motions seeking to dismiss the case, and they also want federal prosecutors sanctioned, presumably for some sort of alleged misconduct. But the details of those motions remain a mystery because the government got a judge to order the motions and all materials related to them to be filed under seal.
The Star Tribune filed motions Wednesday afternoon seeking to intervene in the case in an effort to get the motions and related materials opened to the public. The newspaper also objected to the cryptic notice on public dockets about the filings, which simply show that a dozen nondescript documents have been filed under seal between June 30 and July 2.
Assistant U.S. Attorney Joe Dixon declined to comment, saying any response would be filed in court.
It appears that one of those filings is an objection from Petters' attorneys to the June 30 sealing order. Though Petters' lawyers declined to comment, U.S. District Judge Richard H. Kyle is scheduled to hear arguments in St. Paul on Monday about a motion to unseal the documents. The hearing was scheduled before the newspaper filed its own motion to unseal the documents.
The newspaper notes in its motion that Petters is a well-known Twin Cities businessman whose holdings have included Sun Country Airlines and Polaroid. His arrest last October on charges related to what authorities have described as a $3.5 billion Ponzi scheme has sparked worldwide interest and news coverage. Petters is fighting the charges and is scheduled for trial in September.
Specifically, the newspaper is seeking to have Kyle vacate his June 30 orders and unseal the defense motions for dismissal, imposition of sanctions, disclosure of evidence and all related documents. It also wants Kyle to direct the clerk to "augment the entries on the docket sheet so it sufficiently describes documents filed in this action."
The news media and public have a "presumptive right of access to judicial proceedings" grounded in the First Amendment and common law, the newspaper argued. Although the right to access is not absolute, the newspaper's attorneys wrote, before a judge seals court records from public view, "it must make specific, on-the-record findings that sealing is 'essential to preserve higher values and is narrowly tailored to that interest.'"
The title of one motion "suggests that it may be related to possible allegations of Government misconduct. Depending on the nature of the allegations, the motion papers may reflect badly upon law enforcement or prosecutors -- or, if unjustified, may reflect badly upon the Defendant and his counsel," the newspaper said. "Either way, no compelling governmental interest exists to shield such persons from public scrutiny by keeping judicial records under seal."
Dan Browning • 612-673-4493
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