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Judge again holds Richie away from Petters assets
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A federal judge Wednesday denied the second attempt by Illinois investor Richie Capital Management to unfreeze certain assets of bankrupt Petters Group Worldwide so that it can recover some of its losses. U.S. District Judge Ann Montgomery ruled that the freeze on Tom Petters' assets and his companies' bankruptcy petitions are too far along to disrupt the process.
Montgomery froze the assets last year after Petters was indicted on charges that he ran a $3.5 billion Ponzi scheme.
In her order, Montgomery wrote that it is more appropriate for Ritchie to participate in bankruptcy proceedings like other creditors.
Ritchie argued that it has liens worth more than $200 million against Polaroid Corp., a division of the Petters Group Worldwide. The U.S. Attorney's office and the court-appointed receiver in the Petters case argued against Ritchie's intervention.
Ritchie, an Illinois-based hedge fund, is one of the largest creditors caught in the collapse of the Petters organization after its namesake was arrested on charges of fraud, conspiracy and money laundering. Petters, 51, of Wayzata, denies the charges and is preparing for a September trial.
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