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Sun Country Parent Raided By IRS, FBI  
User currently offlineWA707atMSP From United States of America, joined Oct 2006, 2211 posts, RR: 8
Posted (5 years 10 months 4 days 8 hours ago) and read 5373 times:

The Minneapolis Star Tribune is reporting that Sun Country parent Petters group's headquarters building is being raided today by the IRS, the FBI, the Justice Department, and the US Postal Service Investigative Division. The building is closed to the public, and all employees were sent home "with pay". The article doesn't say why the raid is being conducted.

Link to article:


http://www.startribune.com/local/29687584.html?elr=KArksUUUU


Seaholm Maples are #1!
14 replies: All unread, jump to last
 
User currently offlineJetblueguy22 From United States of America, joined Nov 2007, 2754 posts, RR: 4
Reply 1, posted (5 years 10 months 4 days 8 hours ago) and read 5347 times:
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Well thats not good. Any info if its related to like price gouging? Interested on what it's all about.
Blue



You push down on that yoke, the houses get bigger, you pull back on the yoke, the houses get bigger- Ken Foltz
User currently offlineWA707atMSP From United States of America, joined Oct 2006, 2211 posts, RR: 8
Reply 2, posted (5 years 10 months 4 days 7 hours ago) and read 5316 times:

My guess is that it has nothing to do with SY's airline operations - maybe the parent company was involved in tax evasion, or some other illegal financial activity?

Regardless of the cause, it's (at best) another distraction for SY management at a time when the airline needs all the help it can get.



Seaholm Maples are #1!
User currently offlineDeltAirlines From United States of America, joined May 1999, 8893 posts, RR: 12
Reply 3, posted (5 years 10 months 4 days 7 hours ago) and read 5297 times:



Quoting WA707atMSP (Reply 2):
My guess is that it has nothing to do with SY's airline operations - maybe the parent company was involved in tax evasion, or some other illegal financial activity?

The office that was raided was in Minnetonka - a good 20 minutes from the airport in good traffic (which is rare on I-494); SY's headquarters are over in Mendota Heights, just across the Minnesota River from MSP. My guess this is about the parent company and not anything specific to the individual companies (SY, Polaroid, etc.).


User currently offlineLAXintl From United States of America, joined May 2000, 24819 posts, RR: 46
Reply 4, posted (5 years 10 months 4 days 7 hours ago) and read 5192 times:

Speaking of Sun Country did they ever manage to get the financial aid they were seeking from the government?

I know they are not in the best of shape with about 1/4 of the pilot workforce on furlough and last week in DOT filings posted a $13.4mil loss on $56.6 million in revenues for Q2 -- a terrible 24% negative operating margin.



From the desert to the sea, to all of Southern California
User currently offlineFlighty From United States of America, joined Apr 2007, 8400 posts, RR: 3
Reply 5, posted (5 years 10 months 4 days 6 hours ago) and read 5072 times:

It will be interesting to see if their diverse business interests were centered around some sort of criminal activity. It is sort of like a miniature Tyco. It wasn't clear why Petters was organized the way it was --- SY, some real estate, some publishing. Didn't make sense. But as a front for laundering money, or tax evasion, it might be very useful for that.

As a diverse holding company, it could potentially move money around in interesting ways.


User currently offlineWA707atMSP From United States of America, joined Oct 2006, 2211 posts, RR: 8
Reply 6, posted (5 years 10 months 4 days 4 hours ago) and read 4885 times:

[

Quoting LAXintl (Reply 4):
Speaking of Sun Country did they ever manage to get the financial aid they were seeking from the government?

I know they are not in the best of shape with about 1/4 of the pilot workforce on furlough and last week in DOT filings posted a $13.4mil loss on $56.6 million in revenues for Q2 -- a terrible 24% negative operating margin.

SY hasn't gotten any assistance yet. The article says they might need $50 Million.

An updated version of the article says the investigation has nothing to do with SY. However, it will make it harder for the parent company to work on a turn around plan for SY.



Seaholm Maples are #1!
User currently offlineWedgetail737 From United States of America, joined Aug 2003, 5890 posts, RR: 6
Reply 7, posted (5 years 10 months 2 days ago) and read 2921 times:
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I wonder if there will be a few more 738's that will soon become available.

User currently offlineSYfan100 From United States of America, joined May 2008, 590 posts, RR: 0
Reply 8, posted (5 years 10 months 1 day 6 hours ago) and read 2645 times:

Reading the lasted news reports about why the raid happen, Tom Petters is in a hole that he will not be able to get out.

User currently offlineKingAir200 From United States of America, joined May 2006, 1611 posts, RR: 2
Reply 9, posted (5 years 10 months 1 day 4 hours ago) and read 2556 times:

The front page on the Star and Sickle yesterday said fraud "in excess of $2 billion" could be traced to Petters and his secret scheme.

http://www.startribune.com/business/29817604.html?



Hey Swifty
User currently offlineWA707atMSP From United States of America, joined Oct 2006, 2211 posts, RR: 8
Reply 10, posted (5 years 9 months 4 weeks 1 day 12 hours ago) and read 2292 times:



Quoting SYfan100 (Reply 8):
Reading the lasted news reports about why the raid happen, Tom Petters is in a hole that he will not be able to get out.

What makes me really upset about this is that, at worst, Petters will do a few months at a minimum security prison camp, then, he will have enough of his fortune left to still live very comfortably once he gets out.

Many of the employees at his company, and at companies like SY, Polaroid, and Fingerhut, who had nothing to do with the fraud, will lose their jobs in the middle of a recession, when it will be very hard to find work.

It sure would be nice if Petters lost everything, and wound up having to live in a 500 square foot apartment overlooking Powderhorn Park in south Minneapolis' "war zone", but his employees were able to keep their jobs and homes.



Seaholm Maples are #1!
User currently offlineLAXintl From United States of America, joined May 2000, 24819 posts, RR: 46
Reply 11, posted (5 years 9 months 4 weeks 22 hours ago) and read 2081 times:

Definately not a good sign for SY.

Quote:
Sun Country workers face temporary 50% pay cut
September 29, 2008

Low on cash as it enters one of the slowest travel seasons of the year, Sun Country Airlines told workers on Monday it would cut their pay in half beginning next week and reimburse them in 2009.

But the carrier's two large unions -- representing pilots and flight attendants -- haven't endorsed that plan.

Sun Country's move came as its embattled chairman and majority shareholder, Tom Petters, resigned Monday as chairman and CEO of Petters Group Worldwide as well as from roles in its affiliate companies, including the airline. Petters is the main target of a federal fraud investigation.

Stan Gadek, Sun Country's CEO, told employees in a Monday letter that he had planned to request "a short-term loan" from Petters to help Sun Country make timely payments of its bills for fuel, wages and other expenses.

But, he said, Sun Country "must now become financially independent of our parent company" during the slow fall season.

Sun Country, based in Mendota Heights, lost $47 million on $251 million in operating revenue for the 12 months ending in June. It had a $2.3 million cash cushion at the end of June.

http://www.startribune.com/business/...kUiD3aPc:_Yyc:aULPQL7PQLanchO7DiUr



From the desert to the sea, to all of Southern California
User currently offlineGCT64 From United Kingdom, joined Nov 2007, 1366 posts, RR: 1
Reply 12, posted (5 years 9 months 4 weeks 15 hours ago) and read 1983 times:

It will be interesting to see what becomes of the Petters' A318 Exec/Corporate orders - 6 ordered, (potentially) largest fleet in the world.

and I recall that he has (had) a 727 as well?



Flown in: A30B,A306,A310,A319,A320,A321,A332,A333,A343,A346,BA11,BU31,B190, B461,B462,B463,(..50 types..),VC10,WESX
User currently offlineBurnsie28 From United States of America, joined Aug 2004, 7531 posts, RR: 8
Reply 13, posted (5 years 9 months 4 weeks 14 hours ago) and read 1930 times:



Quoting WA707atMSP (Reply 2):
My guess is that it has nothing to do with SY's airline operations - maybe the parent company was involved in tax evasion, or some other illegal financial activity?

To say that the raid had nothing to do with Sun Country is BS, their parent was being raided and investigated for under the table activities, of which might of had something to do with SY and the Petters group being able to buy them. Its not a big surprise to me, that group was always a little sketchy.



"Some People Just Know How To Fly"- Best slogan ever, RIP NW 1926-2009
User currently offlineFlighty From United States of America, joined Apr 2007, 8400 posts, RR: 3
Reply 14, posted (5 years 9 months 4 weeks 14 hours ago) and read 1912 times:

Petters group was easily able to buy SY (so could some a.netters). But were they able to subsidize SY's money losses?... and why would they want to?...

Quoting Burnsie28 (Reply 13):
that group was always a little sketchy.

Agreed. From their website: "We couple excellent and revolutionary business practices with the Petters Group Worldwide core values: Innovation, Execution, Humility, Integrity, Caring and Agility. " Hmm. oookay.

Very secretive operation and from outward appearances, it wasn't clear what they do, or why. Their emphasis seems to be on image rather than content. Which only begs the question, what is inside the black box...


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