More bonuses sought by Petters receiver

  • Updated: April 3, 2013 - 9:03 PM

Michael O’Shaughnessy, a former executive with Polaroid and other corporate entities owned by Tom Petters, is on the hook for another $670,000 that he allegedly received as fees and bonuses from the convicted former Wayzata businessman while Petters ran a crooked $3.65 billion Ponzi scheme.

In a lawsuit filed earlier this week in federal court in Minneapolis, court-appointed receiver Doug Kelley said the money constituted “fraudulent transfers” that O’Shaughnessy should return to the Petters receivership to eventually help repay victims of the fraud.

“O’Shaughnessy knew of the fraud, or willingly ignored it, and accepted these payments and gifts from the scheme,” the suit states.

In separate lawsuits filed earlier in the Petters bankruptcy case and the bankruptcy proceedings of Polaroid, the trustees for those two cases are seeking nearly $9 million from O’Shaughnessy for payments he received from Petters.

O’Shaughnessy could not be reached for comment. He was last listed as president of Eden Prairie-based Element Electronics, which planned to build a plant in Michigan to manufacture televisions.

Petters is serving a 50-year prison sentence for his role masterminding a fraud that took money from investors who thought they were buying consumer electronic goods for resale to retailers only to use the funds to repay other investors.

David Phelps

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