Few have the gall of John Earl Petersen. And that’s a good thing. The Spokane man believed to have masterminded the $11 million collapse of Mountain Bank of Whitefish in the mid-1990s was captured in Boulder, Colo., last week. Among his belongings: a blond wig, several dismantled cell phones and a book titled “How to get Lost in America.”
He had it all planned out. He would keep running, change his identity and swindle another fortune. Instead, Petersen’s victims may enjoy some belated justice when he faces an angry U.S. District Court judge. After all, in December, Petersen walked out of Judge Cynthia Improgno’s Spokane courtroom – right past several FBI agents – and drove away in a Cadillac after realizing he was about to be arrested for breaking probation.
At the time, Petersen had been out of prison on supervised release; his original sentence had been greatly reduced when he agreed to squeal on his associates. When he violated his conditions of release, he was spared more prison time by promising to avoid using drugs and alcohol. When he was ordered to court again, he knew it was high time to bolt. Why he was given so many chances in the first place is impossible to wrap one’s head around.
Petersen was involved in organized crime and lived lavishly for several years in Spokane. He spent thousands on flowers, cars and mistresses. The IRS and FBI spent five years investigating, including rummaging through his trash, before arresting Petersen. No one’s sure exactly where all his money went. But in the end, the kingpin spent just five years in prison.
Old habits, apparently, die hard.
While out on probation, according to the Spokesman-Review, Petersen was living with his 95-year-old aunt. He promptly placed her in a nursing home and used her money to massively renovate her home, which included buying a “refrigerator equipped with a flat screen.” That alone deserves a life sentence, or at least one equal to his co-conspirators serving lengthy prison terms.
The 60 months Petersen ended up serving appeared like a slap on the wrist, even if he was providing feds with information. By comparison, last month a Bozeman woman was sentenced to 42 months in prison for forging checks. She stole about $15,000, which would barely pay for Petersen’s annual floral tab.
A Billings woman, convicted last year of embezzling several hundred thousand dollars from a previous employer, was sentenced to 54 months in prison – a despicable crime, but next to her, Petersen looks like Tony Soprano.
Petersen may be even worse than Patrick P. Davison. The former broker from Billings was convicted last year of defrauding almost $5 million from Montana investors. He was sentenced to 10 years in prison, the maximum allowed.
And while I understand each case is different, and unique circumstances affect both what a prosecutor asks for punishment and what a judge eventually decides, I can’t fathom Petersen could deserve anything less. He is far more than a white-collar criminal, at one point hiring a man convicted of attempted murder to collect debts owed to him.
I’m originally from Spokane, so I have a vested interest in purging that town of gangsters. In this case, the courts get a second chance at justice. I hope it takes advantage.