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Sirens & Gavels

Thu., March 1, 2012, 10 a.m.

Con man admits swindling elderly aunt

Convicted bank swindler John Earl Petersen is pictured in 1997. (Dan McComb/The Spokesman-Review)
Convicted bank swindler John Earl Petersen is pictured in 1997. (Dan McComb/The Spokesman-Review)

Convicted bank swindler John Earl Petersen is pictured in 1997. (S-R archives)

A convicted con man already due to serve more than two years in federal prison has resolved a three-year-old identity theft case in Spokane County.

John Earl Petersen, 61, was sentenced Wednesday to 13 months in prison for swindling his elderly aunt out of her life savings.

Petersen, the key figure in the collapse of a Montana bank more than a decade ago, will serve the time concurrently with a 27-month federal sentence imposed last month for stealing nearly $170,000 from a brother and sister in 2006 after telling them they would receive $100 million in return.

Federal prosecutors said in 2008 that Petersen used more than $400,000 belonging to his 95-year-old aunt, Gunly Petersen, for personal use, including a lavish remodel at her home in the 1300 block of South Greene Street. He had moved her into a nursing facility and was to be overseeing her health and finances.

It's the latest for an admitted con man and frequent Las Vegas gambler who had a business office in Spokane when he was arrested in 1998, accused of masterminding the $10.5 million collapse of Montana Bank of Whitefish, Mont.

Petersen shocked federal authorities in December 2007 when he walked out of U.S. District Court in Spokane after reviewing paperwork indicating he would be taken into custody at the hearing.

He sped away in his Cadillac and was arrested five months later in Boulder, Colo., with a blond wig and books about changing identity.

Past coverage:

Feb. 1, 1998: Agent paints Petersen as loan-sharking mobster
 




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