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St. Paul, Minn. (AP)

Investor details $60M lost in alleged Petters scam

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Jurors in the Tom Petters fraud trial are hearing how a hedge fund lost $60 million.

Gregg Colburn, a partner in Interlachen Capital Group, told jurors on Friday that his company thought Petters Co. Inc. was going to use the money to buy Sony and Panasonic TVs from a distributor.

Colburn said Interlachen was led to believe that the TVs were being unloaded by the bankrupt retailer Circuit City.

Colburn said Petters and his associates also led them to believe that Petters' company would be re-selling the TVs to the retailers Sam's Club, Costco and BJ's Wholesale Club.

It turned out that the merchandise never existed, and Interlachen lost its $60 million when the Petters empire collapsed last year.

Prosecutors are using the deal as an example of how Petters' alleged $3.65 billion Ponzi scheme operated.