An air of mystery has engulfed one of the key players in the investigation of Tom Petters and the alleged $3.5 billion Ponzi scheme that authorities say ran through Petters Company Inc., until it fell apart last fall.
Larry Reynolds, the Los Angeles businessman who testified that he helped launder billions of dollars for the Petters operation, may have done so under the government's nose.
Petters' attorneys have filed a motion raising the question of whether Reynolds, 67, is enrolled in the Justice Department's witness security program, also known as the witness protection program.
Little more is said about Reynolds in the short motion. But attorneys Jon Hopeman and Paul Engh contend they need to know about Reynolds' past if they attempt to impeach any testimony he may give against Petters.
It's not clear that he would testify, however. Reynolds' plea agreement does not explicitly require his cooperation in the investigation.
The witness protection program is run by the U.S. Marshal's Service and provides security, including new identities, for government witnesses who've provided testimony against major criminals that could prompt retaliation. Participants usually have been involved in criminal activity themselves.
The U.S. Attorney's Office in Minneapolis has yet to respond in writing to the Reynolds motion and is saying nothing until it does.
Reynolds' attorney, Frederic Bruno, said he cannot comment on the motion.