Accused US Ponzi schemer: I learned of fraud late

* Petters defense rests case

* Petters said realized fraud only after-the-fact

* Petters accused of $3.65 billion Ponzi scheme

* Jury may get case on Monday

By Art Hughes

ST. PAUL, Minn., Nov 20 (Reuters) - Minnesota businessman
Tom Petters made a final push on Friday to convince a federal
jury he was not responsible for a $3.65 billion Ponzi scheme
that bankrupted his company.

Petters testified for a little over half an hour on Friday,
after previously testifying for two full days and part of a
third, before his lawyers rested their case.

Questioned by prosecutor Joe Dixon in St. Paul federal
court, Petters maintained that he was not responsible for a
fraud at his company Petters Group Worldwide LLC, which defense
lawyers have tried to pin on subordinates.

"You were living in a false world," Dixon said, alluding to
the defense that Petters lacked intimate involvement in daily
operations that might have uncovered the fraud sooner.

"Apparently I was," Petters responded.

"Sir, you were raising money fraudulently."

"That is a fact I realized after it happened."

Petters' now-bankrupt empire once included companies such
as Polaroid Corp and Sun Country Airlines Inc.

It crashed last year when he was accused in a 20-count
indictment of fraud, money laundering and other charges.

A Ponzi scheme occurs when money from new investors is used
to repay earlier investors. Petters has tried to convince
jurors that a former subordinate, Deanna Coleman, and others
conducted the fraud for which he is being tried.

Coleman has pleaded guilty in the case, and testified
earlier this month against Petters as a prosecution witness.
The two had a brief sexual relationship, Petters testified.

Prosecutors have accused Petters of promising investors big
returns through financing his company's purchase and sale of
electronics goods to retailers such as Costco Wholesale Corp
(COST.O) and BJ's Wholesale Club Inc BJ.N.

They have also said Petters concocted fake checks and
purchase orders to deceive retailers into believing that he was
transacting more business with them than he actually was.

U.S. District Judge Richard Kyle scheduled closing
arguments and jury instructions for Monday, and the case may go
to the jury that day.

The judge said jurors will decide whether to deliberate on
Wednesday if they have by then yet to reach a verdict, or else
resume deliberations the following Monday. The trial began more
than three weeks ago.

The case is USA v. Petters et al, U.S. District Court,
District of Minnesota, No. 08-00364.
(Reporting by Art Hughes; Writing by Jonathan Stempel, editing
by Matthew Lewis)