An Ohio business school dean has agreed to return stock and $1.25 million in cash he says he earned as a consultant to Tom Petters before the Wayzata businessman was caught running Minnesota's biggest business scam.
The settlement with Roger Jenkins, dean of the Richard T. Farmer School of Business at Miami University in Oxford, Ohio, was disclosed Wednesday in a court filing by the receiver sorting through the Petters mess for funds to compensate fraud victims.
Under the settlement, Jenkins will return the cash and 22,200 shares in Internet retailer Enable Holdings Inc., operator of websites uBid and RedTag. The over-the-counter stock traded Thursday for less than 1 cent. Petters is still listed as the company's largest shareholder.
Court papers say Jenkins received stock and $1.75 million cash for a "variety of consulting services" for Petters and his companies beginning around March 2005 and "ending on or about Sept. 1, 2008" -- roughly a month before Petters' arrest.
Jenkins, who is not accused of wrongdoing, released a statement through his attorney, saying he "was shocked and dismayed" by the Petters allegations, and has cooperated with receiver Doug Kelley.
"This was a good result arrived at without litigation that contributes to the receiver's efforts to provide compensation to people who invested with Petters and suffered economic losses," the statement said.
It is the second time Miami University has surfaced in the Petters case. In late 2009, the university agreed to return more than $5 million in Petters' donations pledged on behalf of his late son, John, and his daughter, Jennifer. John, a Miami student, was killed in Italy during spring break in 2004.
Petters was convicted in 2009 and sentenced to 50 years for operating a $3.65 billion Ponzi scheme that fooled investors into thinking they were underwriting lucrative consumer electronic deals, which didn't exist.
David Shaffer • 612-673-7090