Petters trial: Prosecution rests, defense tells its side

ST. PAUL, Minn. -- After nearly three weeks and more than 30 witnesses, federal prosecutors rested their case in Tom Petters' federal fraud trial.

Now it's up to the defense to put the evidence in a different light for the jury.

Their goal is to show that while he built a business empire, Tom Petters really wasn't in control.

The defense team will point to two things - Petters' personality and the people he had around him.

Their first witness was a former Circuit City employee who worked on a merchandise deal with Petters a decade ago.

Alan Winik described Petters saying, "Organization was not his strong suit...Tom was shooting off in so many different directions."

So many directions in fact, Petters' defense has argued that his management style meant Petters didn't know about the multi-billion dollar fraud his top executives were running.

Also on Monday, Petters' cousin Karl testified about working for Petters in the late 90s. He told the court, "I loved the man, hated him as a boss."

The defense strategy also includes a big change that happened in Petters after his son's murder a few years ago. Petters' former father-in-law testified that the death had a huge impact. Petters threw himself into his work, but at the same time, took on too many responsibilities.

But a big question remains unanswered. Will Petters himself take the stand?

His testimony would be key, says former trial attorney and adjunct professor at William Mitchell College of Law, Link Christin.

"Juries often make these decisions based on their gut...and if he tells a story that resonates emotionally with them, then lots of times that wins cases," says Professor Christin.

The court also heard on Monday from a final prosecution witness. IRS agent Kathy Klug tracked Petters' money. She told the court that bank statements show Petters had more than $80 million dollars of investor money in his personal accounts. He spent that money on many things including, gambling in Las Vegas and expensive cars.

The defense, however, pointed out that Petters also gave a lot of money to charity.

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