In yesterday's fraud trial testimony, one of Petters' dupes described how he "planned to go to California to inspect the inventory [he was asked to invest in], but Petters said no because it was in a locked facility available only to the insurers of the merchandise."
Right. Available to insurers but not investors.
That excuse sounded to me remarkably like what the married guy says to his girlfriend when she wonders why they never spend any time at his place.
Some of the other behavior sounded familiar, too. For example:
Tells stories that don't make sense. Paul Feehan, GE Capital's manager of corporate lending at the time, testified that he called Petters directly to discuss his company's mounting financial troubles. "I got a series of promises. There was always a new excuse and the excuses kept piling up," he said.
Accuses you of infidelity. Feehan said he and Marrone wrote Costco to check on the inventory of electronics goods that Petters claimed to have bought with the money he borrowed. Petters immediately called back and "read me the riot act," Feehan said. "He was very adamant that I stay away from Costco."
Takes offense when you make normal and natural inquiries and may demand to know why you are checking up. When Colburn told Petters he intended to call the companies that were supposed to sell the TVs, Petters was adamantly opposed. He said Petters left a voice mail message saying, "You won't get the satisfaction that you're looking for."
Lives a changed or more extravagant life style. The dapper Petters funded his philanthropy, gambling and world travel with money from investors.
Signs of unexplainable exhaustion or restlessness. Petters was notoriously fidgety and had a short attention span, so any change there would be in matter of degree.
Hides or “loses” bills. A classic symptom. Instead of hiding paperwork about his transactions, Petters forged it.
Withholds affection and/or sex. When one lender questioned Petters too closely, he terminated the relationship, saying they were too hard to do business with.
Concocts alibis calculated to elicit empathy instead of scrutiny. At one point in August 2008, Petters told one of his investors that he had a family emergency and would repay the investor "within days," the government said, noting that Petters then sent an e-mail to Coleman that said, "Dancing...my sh[o]es have holes i[n] them."
Petters is still dancing. His defense claims he was victimized by others while he was distraught over the death of his son.