Frank Vennes Jr. was in the Sandstone Federal Correctional Institution on money-laundering, drug and firearm charges in 1987 when a prison volunteer suggested that he behave like the Apostle Paul and give thanks for his circumstances.
Vennes later said in an interview that the talk caused him to turn his life over to God.
Vennes, 50, went from being a former felon and owner of a pawnshop in Bismarck, N.D., to a multimillionaire philanthropist who runs numerous companies and has major land holdings in Minnesota and Florida. In his spare time, he gave inspirational talks to prisoners about how he'd left behind a life of crime to become a success.
But on Sept. 24, Vennes' Shorewood home was one of nine sites raided by federal agents investigating an alleged Ponzi scheme involving prominent businessman Tom Petters, who was arrested Friday at his Wayzata home.
The government is investigating allegations that Petters, Vennes and other associates raised funds from investors for the purchase and resale of electronic goods that actually didn't exist, then used the money for other purposes.
Vennes, who has not been charged, did not return calls seeking comment for this report.
An associate of Petters who has not yet been identified agreed to plead guilty to one count of conspiracy and began helping the government with the investigation in September. On Friday, Petters, 51, and Larry Reynolds, a 67-year-old business associate from Las Vegas, were charged by prosecutors with mail fraud, wire fraud, money-laundering and obstruction of justice. In a separate but related matter, Michael Catain, another Petters associate, was charged Friday with money-laundering conspiracy. Petters has said through an attorney that he is innocent, and has resigned as CEO of Petters Group Worldwide and its affiliated companies, Sun Country Airlines and Polaroid, among others.
According to a federal search warrant affidavit, Vennes was a facilitator who persuaded five major investors to invest $1.2 billion in companies controlled by Petters. The document says Vennes collected more than $28 million in commissions for his work.