Receiver Can’t Collect Gift Given As Part Of Ponzi Scheme

Receiver Can’t Collect Gift Given As Part Of Ponzi Scheme

Receiver Can’t Collect Gift Given As Part Of Ponzi Scheme

College successfully asserts defenses of lack of standing and statute of limitations
A court-appointed receiver for Ponzi-schemer Thomas J. Petters and his affiliated companies has no standing to sue to recover gifts under the Federal Debt Collection Procedures Act, even where the government is one of the creditors, a federal District Court in Minnesota has ruled. It has also held that the receiver was barred by the newly passed state statute of limitations from recovering a $2 million gift from a Petters foundation to College of St. Benedict. ( Kelley v. College of St. Benedict, D. MN, No. 12-822, 10/26/12 .)

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