Criminal Defense

Sampson-Jones said he envisions a line of questioning that suggests self-serving motives by Coleman, such as, “You knew this was about to crash so you got in with prosecutors first to get the best deal?” He said defense attorneys may try to suggest that she has an incentive to lie. Her lifestyle, including gambling and jetting to Costa Rica for vacations, may also come under scrutiny.

On the other hand, Sampson-Jones said the government can’t sugarcoat Coleman’s cooperation. “The prosecution can’t paint her as a saint. She was in on it, too,” he noted.

Others who were part of the investment operation who are expected to testify are Robert White, who drafted fraudulent purchase orders for electronic goods to help fool investors; Michael Catain, who used an office in his Excelsior car wash as a conduit for large movements of cash to and from the Petters operation, and Larry Reynolds, a Los Angeles businessman who let Petters use his corporate bank account to move billions of dollars, allegedly to create the illusion of legitimate business transactions.

Reynolds has gotten particular attention from Petters’ attorneys, who are seeking to link him to past criminal activities that led to his participation in the federal witness protection program.

“This is a key part of our case,” defense attorney Paul Engh told Kyle in a pre-trial hearing last week. “This person has a lifelong history of fraudulent activity. He had a scheme and a plan to deceive people, including Mr. Petters.”

Key to defense: an attack

“There are a couple of routes to victory for the defendant,” said Don Lewis, a former federal prosecutor and dean of the Hamline University School of Law. “First, you attack the government witnesses and their credibility. If you can very quickly get jurors to dislike a government witness because of bad motives or a shadowy past, then that may yield some sympathy for the defendant.

“Second, you attack the government as being abusive, heavy handed, incompetent. Maybe they mishandled a witness,” Lewis said. “And, third, most white-collar defendants got to be successful because they can work a room. There might be strength of personality.”

One of the mysteries of the trial might be the activities of Frank Vennes Jr., a Petters associate in the investment operation who recruited investors while collecting multimillion-dollar commissions.