Call Now For a Free Consultation:
(614) 532-4576
Nationwide Representation

Edina Woman Pleads Guilty in Ponzi Scheme

A 43-year-old woman has been linked to a Ponzi scheme involving approximately $3.65 billion. Michelle Webster Palm, 43, of Edina, pled guilty in federal court on Friday, April 8, 2011, to aiding and abetting criminal activity between September 2007 and September 2008.

According to reports, Ms. Palm pled guilty to one count of securities fraud and one count of providing false statements to a government agent. Her guilty plea was made before U.S. District Court Judge Richard Kyle.

Ms. Palm was the vice president of special operations and later became the managing director of finance at Arrowhead Management. Arrowhead Management, which is the operator of three hedge funds, primarily invested in Petters Company, Inc, the owner of which, Tom Petters, was sentenced last year to 50 years in prison for orchestrating the $3.65 billion Ponzi scheme.

According to Ms. Palm's admission in court, she hid pertinent information from investors that millions of dollars of Petters' notes being held by Arrowhead Management were almost in default. Reports indicate that Arrowhead Management received approximately $35 million in fees during the life of the fund.

Ms. Palm's sentence hearing has yet to be scheduled. She faces up to five years in prison for each charge.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation
Atlanta Office

945 East Paces Ferry Road, Suite 2275
Atlanta, GA 30326
Columbus Office

305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram