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Judge says bank must wait in Petters case
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A federal judge in Minneapolis on Tuesday rejected efforts by a New York bank to liquidate several of Tom Petters' investment accounts to settle $3.8 million in debts to the bank.
U.S. District Judge Ann Montgomery wrote that J.P. Morgan Chase Bank and Chase Equipment Finance Inc. would have to wait along with other creditors until a criminal case against Petters is resolved. Petters is in federal custody awaiting a September trial on conspiracy, fraud and money-laundering charges related to what the government has described as a $3.5 billion Ponzi scheme he allegedly orchestrated.
Montgomery noted that government prosecutors had identified Petters' investment accounts as "potentially forfeitable." The bank's property interests take a back seat in a forfeiture proceeding, she said.
DAN BROWNING
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