Hedge fund owner in Petters case denied bail

The owner of a Chicago hedge fund charged with helping Tom Petters fund his $3.5 billion alleged Ponzi scheme was denied bail Tuesday, reversing a bail decision last week, according to media reports.

Gregory Bell was sent back to Anoka County Jail, where he’s been held for the past week, the Pioneer Press reported. U.S. District Court Chief Judge Michael Davis made the decision based on prosecutors’ arguments that Bell is a flight risk because he put $15 million into foreign bank accounts last year.

Bell, who run Lancelot Investment Management, had been granted $1.5 million bail last week to return to Chicago. Bell faces federal criminal charges of wire and mail fraud, as well as securities fraud.

Lancelot Investment Management raise $2.6 billion which was invested to support Petters’ fraud scheme, according to prosecutors.