Petters victims lose appeal over repayment of losses
- June 13, 2011 - 9:05 PM
WASHINGTON - The Supreme Court has rejected an appeal from investment funds seeking repayment of their losses in a $3.7 billion Ponzi scheme operated by Minnesota businessman Tom Petters.
The funds together lost $165 million and challenged a federal judge's order denying restitution to Petters' victims.
Among other things, U.S. District Judge Richard Kyle said the victims might be able to recoup some of their money via claims in bankruptcy court.
The justices on Monday refused to disturb the ruling.
Federal law generally requires a judge to order restitution as part of a defendant's sentence, but allows for some exceptions. Kyle ruled that, in this case, restitution would be too complex, take too long and result in the payment of less than a penny for each dollar that victims lost.
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