Minn. College Dodges $2M Petters Ponzi Scam Clawback Suit

Law360, New York (October 31, 2012, 4:44 PM EDT) -- A federal judge on Friday dismissed a $2 million clawback suit against a St. Joseph, Minn., liberal arts college brought by the receiver seeking recovery from the $3.5 billion Thomas J. Petters Ponzi scheme, ruling the receiver lacked standing under federal law to go after the charitable donation.

Because court-appointed receiver Douglas Kelley represents the creditors of Petters — who is serving a 50-year prison sentence — and not the government, he lacks standing to bring suit against the College of Saint Benedict under the Federal...
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