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Judge dismisses lawsuit over Petters' $2M donation to college

  • Associated Press
  • October 31, 2012 - 7:49 AM

MINNEAPOLIS - A federal judge has dismissed a lawsuit that attempted to recoup a $2 million donation to the College of St. Benedict made by a businessman convicted of fraud.

Tom Petters gave the money to the college in St. Joseph so it would name its auditorium after his parents. Petters was convicted in a $3.6 billion Ponzi scheme and sentenced to 50 years in federal prison.

Court-appointed receiver Doug Kelley has been trying to recover any of Petters' assets for victims of his fraud scheme. He sued St. Ben's, seeking to recover the donation made by Petters.

The St. Cloud Times ( http://tinyurl.com/ccce3m2) says U.S. District Judge Richard Kyle ruled only the government could sue under a federal debt collections law.

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Information from: St. Cloud Times, http://www.sctimes.com

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