No verdict yet in U.S. case of accused Ponzi schemer

ST. PAUL, Minnesota (Reuters) - A federal jury adjourned deliberations on Monday without reaching a verdict over whether Minnesota businessman Tom Petters orchestrated a $3.65 billion fraud that prosecutors have labeled a Ponzi scheme.

Prosecutors have accused the founder of Petters Group Worldwide Inc of using one of his companies, Petters Co, to steal from investors who thought he was using money to buy electronics for resale to retailers such as Costco Wholesale Corp and BJ's Wholesale Club Inc.

Petters has argued that others conducted the fraud without his knowledge, including two former company executives who pleaded guilty in the case.

Jurors on Monday deliberated for more than seven hours in a St. Paul, Minnesota federal court and sent no communications to the judge in that time.

They have deliberated for roughly 17 hours over three days, and are expected to resume deliberations on Tuesday.

Petters faces 20 counts including wire fraud, mail fraud and money laundering, and if convicted could face up to life in prison.

The case is USA v. Petters et al, U.S. District Court, District of Minnesota, No. 08-00364.

(Reporting by Todd Melby; Writing by Jonathan Stempel)