Living expenses and health insurance premiums for Tracy Mixon, the ex-fiancée of former Wayzata businessman Tom Petters, and their two children were officially terminated Thursday.
U.S. District Judge Ann Montgomery signed the order ending the benefits noting that Mixon, 39, had more than three years to assume the role of "sole wage earner" for herself and the two children.
"Continued payment of monthly living wages from funds procured by Petters' fraud is unwarranted and not in the best interest of the receivership," Montgomery wrote in her order.
Mixon had been collecting $1,879 a month in living expenses and health insurance payments from court-appointed receiver Doug Kelley.
Kelley and the U.S. attorney's office both told Montgomery in a hearing on Wednesday that it was time to halt the payments. Mixon did not file an opposition motion to the Kelley request.
Petters is currently serving a 50-year prison sentence for his role leading a $3.65 billion Ponzi scheme that fell apart in 2008.
DAVID PHELPS
