ZIMMERMAN REED FILES LAWSUIT ON BEHALF OF NON-PROFIT AND CHARITABLE
GROUPS SEEKING RECOVERY OF INVESTMENTS FROM PETTERS’ FRAUD
MINNEAPOLIS, MN – October 10, 2008 – Zimmerman Reed announces it’s filing of a class action
lawsuit in the United States District Court for the District of Minnesota. This lawsuit is filed on behalf
of more than one hundred individuals, including area pastors, schools, and founders and supporters of
charitable and non-profit organizations. The named Plaintiffs in the action are two investment groups,
called AI Plus and IOC; the two investment groups filed on behalf of the losses of their 110 members.
The Complaint also is brought as a class action, on behalf of all other individuals and non-profits who
invested in their transactions using Metro Gem, Inc. as its broker. The Class Action Complaint names
Petters Group Worldwide, Petters Company, Inc.(PCI), Enchanted Family Buying Company,
Nationwide International Resources, Inc., Thomas Joseph Petters, Robert Dean White, Deanna
Coleman, Michael Catain, and Larry Reynolds, for violations of federal, state and common laws.
The complaint alleges that Petters and the other Defendants perpetrated a fraudulent scheme upon
investors, in violation of the Racketeer Influenced and Corrupt Practices (RICO) Act, the Minnesota
Prevention of Consumer Fraud Act, the Minnesota Unlawful Trade Practices Act, the Minnesota
Deceptive Trade Practices Act, the Minnesota Uniform Securities Act, Fraudulent Inducement,
Conversion, Accounting and Unjust Enrichment.
According to the Complaint, Defendants effectuated the fraudulent scheme by creating fictitious
documents, provided to current and potential investors as evidence that PCI was buying and selling
substantial goods and merchandise for a profit. These goods, however, never existed. The complaint
also alleges that Defendants fraudulently pledged the non-existent goods and merchandise as security
for the investments, so that investors believed their investments were secured.
Plaintiffs are predominantly investors from the Twin City community who are non-profit
organizations, founders and managers of charitable organizations, pastors, faith-based schools and
supporters who have strong ties to these organizations. Most of these individuals have served their
community for decades. The investors and their families have suffered devastating financial losses as a
result of Defendants’ racketeering and illegal scheme to defraud. Many have lost their life savings.
Defendants targeted Plaintiffs and illegally obtained Plaintiffs’ money by using brokers and agents
who were trusted and known to the charities and non-profit community. Plaintiffs seek to recover
damages and other remedies under federal, state, and common law. The plaintiffs are represented by
Zimmerman Reed, which has extensive experience in prosecuting investor actions involving financial
fraud.
Zimmerman Reed’s attorneys practice complex litigation in federal and state courts throughout the
country. The Zimmerman Reed web site (www.zimmreed.com) has more information about our firm
and cases. For more information, contact Carolyn Glass Anderson at (612) 341-0400.
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