One month after he was jailed for contempt of court, Tom Petters co-conspirator Larry Reynolds was sentenced Tuesday to 10 years and 10 months in prison for his role in the $3.5 billion Ponzi scheme.
Considered a flight risk, Reynolds was taken into custody immediately following the sentencing. The location of Reynolds’ prison is being kept confidential due to his prior involvement in the witness protection program.
U.S. District Judge Richard told Reynolds ’he has lived a life of crime since he left law school.’ Reynolds is a disbarred attorney.
Reynolds was facing up to 20 years in prison after pleading guilty to his role in the investment fraud, but received some leniency for pleading guilty and testifying against Petters.
Reynolds was convicted of funneling billions of dollars through a shell company to help Petters convince investors that their money was being used to buy and sell consumer electronics. No such electronics deals actually existed.
Reynolds was jailed in August after a judge decided his "sham" divorce was just a ruse to shield his assets from the court. Doug Kelley, the court-appointed receiver in the Petters case, told a judge that Reynolds' divorce was an attempt to protect his assets from being seized by the court by giving them to his ex-wife, Antoinette.
Reynolds, 69, had taken the stand to argue that the divorce was legitimate. When Kelley pointed out that Reynolds and his ex-wife still live together, Reynolds said the move was out of necessity.
"Neither of us can afford to live apart," he said.