Hedge Fund Investors harmed
Lancelot files Bankruptcy Chapter 7 with (19) cases ( here )
Thanks to tipster - a meeting of the minds on R E Fund
Investors Ritchie Dreier Etc
(here )
Legal challenge to Appointment of Receiver

The abuse of discretion by the Federal Court's
Montgomery, giving Douglas Kelly the power to Receive
the Petter's estates has sent a wave of anxiety to all
parties harmed by the Petters debacle.

Judge Montgomery "seized" the day quite literally
and turned a TRO petition of the Federal Government
prosecutions - into a gestapo type tactic to gobble up
the Petters Empire - abusing the "
innocent until proven
" doctrine that is a sine qua non of Federal System
of Justice.

Despite the obvious problems Her Honor and
Douglas Kelly would have - if Petters was found to be -
not guilty!  The big problem brought to bear upon the
ordeal is that rush to judgment and execution (of the
entities) is also intensely convoluted by the erroneous
(unprecedented) filing of bankruptcies and liquidation of
assets without a proper (Public) protocol process.

The American Bar Association has stated that  - the
appointment of a Federal Receiver is made moot; once
a bankruptcy case begins. It is only a matter of time
before experienced counsels gather together and
petition to have the Receiver halted, restrained or totally

The question is - whether or not - the creditors will
do it in a unified manner?  Or will separate battles
transpire? Will "they" challenge the appointment of a

The Receiver was a Temporary Restraining Order
("TRO") fiduciary to protect the estate from vanishing

The rush to sell assets, close retail venues, without
proper protocols, as required by the Bankruptcy Code
brings much into question???????
Domino Effect of Petters debacle

Neil Greenberg of ancillary Fund AGILE SKY gave
this report  to vested parties ( here )
making investors anxious & nervous

Many investors are asking similar questions

"How did our monies get  MISmanaged into this"?

Speculation that Hedge Fund managers were
taking points to invest - abound!

Skybell Partners had several funds that invested
with Lancelot's efforts in Petters.

Agile Sky, Eden Rock and Nightwatch - and others

Some Funds had more than 25% exposure in

Purportedly - some of the Hedge Funds
stipulated that if lack of due-dilligence
can be documented then
liable insurance companies
are also at risk
This is the List of the purported investors,
hedge funds, banks, etc.
,  that we have been made
aware of - claiming (or named) as a party that has been
reportedly harmed or experienced material adversity due
to the Petters Fraud saga;

It you do not see a particular name -
please advise us!

  •       Acorn
  •       American Airlines (under SEAL)
  •       Apriven
  •       Ark Discovery (Ritchie Fund related)
  •       ArrowHead Capital Finance
  •       ArrowHead Capital Partners
  •       C&C Capital Funding (Apriven related)
  •       C I T Leasing (assumed aircraft)
  •       Cision US
  •       CMGRP Inc
  •       Dean Vlahos
  •       Flagler Center Properties
  •       Fredrikson & Byron PA
  •       Interlacheon
  •       JP Morgan Private Bank
  •       Minnwest Bank Metro
  •       Palm Beach (strange relationship(s))
  •       Polaroid
  •       Polaroid of Japan
  •       Priester Aviation LLC
  •       Rhone Holdings (Ritchie related)
  •       Rich Hettler
  •       Ritchie Capital
  •       Ritchie Capital Structure Arbitrage
  •       Sun Country Airlines
  •       Welsh Baker Road
  •       Truth North Funding (Apriven related)

Apriven related entities did petition
the MN Courts by a separate causes of action
(Minn Dist Court 08- 05373)
In mentioning Petters, Apriven noted  Coleman  as (a/k/a
Deanna Munson),.along with Bob White, Larry Reynolds
and various John/Jane Doe(s) 1 to 10
(no mention of Catain)

The Apriven companies stated they are owed $45
million, $1.5 and $3.6 million.

They Seek a Jury Trial

Don't we All --- (
hopefully televised)
Special Section Lancelot ETC  ( here )
Bloomberg NEWS is reports
Barclays Bank Plc
is suing  Ritchie Capital
and its Principal
 - Thane Ritchie - for
failing to disclose the losses incurred of
( here )
we Thank the anonymous tipster
keep the good info coming!!!!
Receiver pushes stymies Creditors
Apriven Creditor petitions Petters Bankruptcy
Cases for Rule 2004 Examination
( here )
Due in no small part to the fact Federal Receiver
- Dept of Justice and Deanna Coleman denied
Creditor right to review Books n Records
Receiver's counsel seeks to assauge
Creditor's request
stating that Petters only
has $9000 in bank account
that $45 million was wired int
( here ) and ( here )
In an effort to answer the question of which Palm
Beach entity is owned by whom = the MN Dist Ct
had this filing of Palm Beach v Palm Beach
Interlachen v Petters original document ( here )
ILL Bankruptcy Court approves Order
that Trustee in Lancelot Bankruptcy
can depose Petters, SunCountry, Fingerhut,
Polaroid, Vennes, Catain etc
Under Federal Rule Bankruptcy Procedure 2004 (
here )
Research Asst Grace
strikes gold - Palm Beach -
Vennes - Reynolds -
Petters - Gottex -
Stewardship - Mancestor
and more  see (
here )
News - new entity - PETRA (T)
Fixed Income Fund LLP
CO puts in Notice of
Appearance Petters case (
here )
Meanwhile the battle of Palm Beach v
Palm Beach
begins (here)
N E W S - Speculation on prosecution of
ancillary Hedge Funds for Honest Services Fraud
to understand (here)
Due to tips from employees and others, we learned that Palm
Beach Links Capital (PBL Capital) was the main ingredient to the
Petters Fraud. We reported earlier (
see below and Investors
) that Frank Vennes along with Bruce Prevost, David
Harrold and PBL's Steve Cammack formed the Palm Beach
entity strictly for Petters. Since then PBL Capital has yanked
down its website (
NEWS = MN Ct grants Receiver's Motion
to modify (expand) Powers ( here )  
& LG moves to Clarify (here) (here) & (here)

JP Morgan puts in a Notice to Appear
here) as Secured Creditor

BATTLE to Remove Receiver looms large as
Ritchie Capital seeks to depose Doug Kelley
with a Motion to Compel
discovery (here)

Doug Kelley refused to answer Ritchie Interog's
Ritchie Cap Objects to Lindquist & Vennum

DK Objects to Motion to Compel (
as attorney puts in NOA (here)
Court approves sales (here)(here)

While the local press refuses to address the
appalling way the MN Federal power mongers have
seized the Petters empire and victims assets for
themselves - others across the country
are getting success against
cronyism and corruption (
here) (here) and (here)
NEWS BREAK - Attorney sues ancillary fund(s)
under ERISA for failure to discover
Ponzi scheme
(here) Law.com
New player appears in Petters bankruptcy cases---
Aaron Chang International
MN firm McGladrey & Pullen are being sued
or failure to perform concerning Petters and Madoff
here) & (here)  
Wall Street Journal Law Blog paltry on Petters (
NEWS - Stewardship puts in appearance (here)
as we get confirmation SEC is investigating PBL
Meanwhile Court schedules Petters Arguments
for March 18th
and DK Receiver gives DK Trustee goods (here)
Larry Reynolds asks again for attorney fees (
Catain free (
here) and Ritchie Capital Appeals DK
being Trustee
(here) & (here)
Dear Ole Richard Hettler
who was defrauded by Petters long ago)
puts in his Objection to Polaroid sale
Forbes story on Prevost and Harrold
setting up Palm Beach for retailers (here)

We have good authority the 2002 set up of the
retail fund was specifically for Petters only ?  

The Palm Beach quagmire has many issues (here) -

Specious fact that Receiver DK's former firm
(Fulbright & Jaworski)
is the one representing "the" other Palm Beach entities

As noted by Forbes the Prevost and Harrold issues
loom large - whilst the Palm Beach Links (PBL Capital)
removed its website once we began to report on their
apparent criminal efforts and failures to disclose.
Cammack's Finova items, Bill Cawley etc, etc.,  

researcher Grace gives a good issue on the various
entities quagmire picture (
here )
The skuttlebutt has it that Vennes
is about to hang out everyone to dry;
including family and friends he talked
into this debacle - many are asking the
question why is his son's email account
being subpoenaed (

Vennes wife name purchased a house
for $250K in 2002 and then a $750,000
loan by Private Bank was taken out in
both Vennes and his wife's name in 2004

Technically, Vennes's mother-in-law
is forbidden from working out a deal -
due to Receiver - for the House that
Vennes talked her into moving into
(as a purported gift from her son

Vennes and his brother Greg
others while claiming Metro Gem
returns 3 to 5% Per Month
(here) -

Vennes is leading everyone to the
slaughter vainly hoping to be Free
and he should be

Meanwhile Vennes has rang up
several million dollars in Criminal and
other attorney fees

Wonder WHY?!?!?!?
NEWS - Motion to Intervene by JP
Morgan Chase (

Memorandum of Law by JP Morgan
Chase details Law against Receiver

JP Morgan Chase list of Exhibits
concerning Motion to Intervene & Void
Receiver (

From the Judge handing out illicit cards
of Judicial Immunity (
here) & (here)
compounded with DK keeping things
close to his breast while acting like a
thanks for JP
NEWS - Ark Royal Asset Management shuts down
due to Petters (

The big push begins as FBI arraignment
of Car Dealer
for fraud on Inventory

Patriarch Partners DROPS their Appeal
of Polaroid Sale (

Tom Petters (
here) Objects to Magistrate
Report & Recommendations (
Appendix to Petters Objections contains
Exhibit of PassPort & Loans

Judge Orders approving Sale of Catain's Costa Rica
Villa and MN homes (
here) & (here)
seeks regular right for exclusivity Reorganization
(here)  fees in Vennes cases (here)
Ritchie and Acorn Appeals and battles v Petters
continue - items for Appeals (

There are 2 docket records Under SEAL in Petters
Criminal Trial  with NO explanation