Petters arrested, so totally busted

A local TV station is reporting that FBI agents arrested Tom Petters, founder of Petters Group Worldwide, at his Wayzata home this morning.

Read our previous stories to get caught up on the Petters drama.

According to KSTP: the CEO of the Minnetonka-based company was:

arrested on a federal complaint charging him with mail fraud, wire fraud, money laundering, and obstruction of justice.

Petters, 51, was charged Thursday in Minneapolis. He is scheduled to make his initial appearance at 3 p.m. Friday before a federal judge.

A second defendant charged in the criminal complaint, Larry Reynolds, 67, Las Vegas, was also arrested Friday at a California residence.

Reynolds is also charged with mail fraud, wire fraud, money laundering and obstruction of justice.

He's screwed. We hope he enjoyed his couple days of freedom after resigning. We will update the blog as the story develops.