Vicis Capital To Pay $7.5M In Petters Clawback Settlement

Law360, New York (February 26, 2014, 8:03 PM EST) -- Hedge fund Vicis Capital Master Fund Ltd. will return $7.5 million it received on an investment in Thomas Petters' $3.7 billion Ponzi scheme, resolving a bankruptcy clawback suit through a settlement approved Tuesday by a Minnesota federal judge.

U.S. District Court Judge Ann D. Montgomery signed off on the deal, which resolves a clawback suit brought against Vicis by Douglas A. Kelley, who serves as a receiver for Petters' personal creditors and Chapter 11 trustee for bankrupt Petters Co. Inc.

A product of mediation between Kelley...
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