Petters Lawsuit - Non-Profit and Charitable Groups Seek Recovery of Investments

Investors from the Twin Cities community including non-profit organizations, founders and managers of charitable organizations, pastors and faith-based schools have filed a lawsuit against Petters Company Inc.. The two investment groups, AI Plus and IOC, filed the class action on behalf of the losses of their 110 members and all other individuals and non-profits who invested in their transactions using Metro Gem, Inc. as its broker.

The investors allege that Petters Company Inc. perpetrated a 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.

Most of these individuals have served their community for decades. The investors and their families have suffered devastating financial losses as a result of this illegal scheme to defraud. Many have lost their life savings. The complaint alleges that Petters Company Inc. targeted these investors and illegally obtained their money by using brokers and agents who were trusted and known to the charities and non-profit community. Investors seek to recover damages and other remedies under federal, state, and common law. The investors are represented by Zimmerman Reed, which has extensive experience in prosecuting investor actions involving financial fraud.

• Click here to view the complaint.

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