Skip to Content

Click on a label to read posts from that part of the world.

Map of the world

Owner of Low-Cost Carrier Jailed for Fraud

Businessman Tom Petters was arrested in Minnesota on Friday as part of a federal fraud investigation. He is the head of an investment group that owns Sun Country Airlines, along with stakes in several other businesses. He was charged with wire and mail fraud, money laundering and obstruction of justice. Investigators allege that he masterminded a plan to bilk other investors out of at least one billion dollars.

A federal judge in Minneapolis order Petters to be held without bail after a taped phone conversation revealed that the disgraced entrepreneur planned to leave the country. A hearing is scheduled for Tuesday. Petters has stated that he plans to fight to be released from custody and maintains his innocence.

What does this mean for Sun Country? The struggling budget carrier has always operated on a shoestring. Petters has agreed to step down from his decision-making position so that the airline will not be harmed by the scandal. However, the scandal comes on the heels of the announcement that Sun Country is struggling and will be "temporarily" cutting staff's salaries by 50%.

Source

Enter to win free tickets to Amsterdam from Gadling!





Why are these the world's best airports?




Click the image to find out!

Filed under: Airlines, News

Find Your Hotel

City name or airport
POWERED BY
City name or airport
City name or airport
POWERED BY
City name or airport
City name or airport
POWERED BY
City name or airport code
If different
POWERED BY
POWERED BY

Search Travel Deals

Reader Comments (Page 1 of 2)

Gadling Features


Most Popular

Categories

Become our Fan on Facebook!

Featured Galleries (view all)

Berlin's Abandoned Tempelhof Airport
The Junk Cars of Cleveland, New Mexico
United Airlines 787 Inaugural Flight
Ghosts of War: France
New Mexico's International Symposium Of Electronic Arts
Valley of Roses, Morocco
The Southern Road
United Dreamliner Interior
United Dreamliner Exterior

Our Writers

Don George

Features Editor

RSS Feed

View more Writers

Weird News

DailyFinance

FOXNews Travel

Engadget

Sherman's Travel

Lonely Planet

New York Times Travel

Joystiq