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Ex-con Gary Growden gets advice and tighter scrutiny

A federal judge warns Gary Growden to steer clear of finance and to watch what he says to reporters.

June 16, 2010 at 10:41AM

U.S. District Judge Patrick Schiltz handed out some advice to convicted swindler Gary Growden on Tuesday, along with some additional punishment.

When you're facing prospects of returning to prison for violating the terms of your probation, Schiltz said sharply, don't go telling a reporter that your previous guilty plea doesn't necessarily mean you committed any crimes.

Schiltz held up a printout of a recent Star Tribune article in which Growden said he pleaded guilty in May 2007 to two counts of wire fraud because his lawyer told him he'd be facing 18 to 20 years in prison if he were convicted at trial of running an investment scheme.

"If that is the reason you pled guilty, then you committed perjury when you were in front of me" three years earlier, Schiltz said.

He read at length from a transcript of Growden's plea hearing, emphasizing passages in which Growden explicitly admitted to his crimes.

Schiltz restarted Growden's three years of supervised release -- essentially adding a year from his previous term. He said Growden should have no computer or Internet access without the approval of his probation officer. He's to have no involvement in the financial services industry, broker no loans, and offer no investment or financial advice, Schiltz said.

"It is obvious he needs to be supervised for as long as possible," the judge added.

Growden, sentenced to 27 months in prison, was released a year ago and placed under supervision. One of the conditions of his release was that he have no fiduciary responsibilities.

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Growden admitted Tuesday that he disregarded an order from his probation officer in December to take down a website offering to assemble financing for business deals.

Assistant U.S. Attorney Joe Dixon told Schiltz that his office is investigating allegations that the 59-year-old Apple Valley resident may be engaging in activities "reminiscent of earlier conduct."

"This matter is moving very quickly. The probation officer and our office did not want to wait for victims" to start showing up, Dixon said.

Even so, he said there was some question as to whether Growden's activities technically constitute a "fiduciary" responsibility. So while the investigation proceeds, the government agreed to let Growden stay on probation under tighter restrictions that he have nothing to do with the financial services industry, Dixon said.

Schiltz said that was his intention in the first place. He said the June 6 newspaper article raised additional questions about Growden's probation restrictions, too.

Schiltz had ordered Growden to pay investors restitution of $385,000. The article described a $25,000 investment Growden had made in Buon Giorno Italia, a restaurant in Lilydale. That wasn't disclosed to the government as it should have been, Schiltz said.

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He also cited Growden's comment to a reporter that he was paying just $100 a month on his restitution, which Growden described as "silly." Schiltz said although he only ordered a payment of that amount, he meant for it to be a minimum. The probation officer should determine what's affordable, he said.

Growden declined to comment.

Dan Browning • 612-673-4493

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about the writer

about the writer

Dan Browning

Reporter

Dan Browning has worked as a reporter and editor since 1982. He joined the Star Tribune in 1998 and now covers greater Minnesota. His expertise includes investigative reporting, public records, data analysis and legal affairs.

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