ST. PAUL, Minn. - Minnesota lawmakers are considering changing the rules on money that may be recovered for victims of businessman Tom Petters’ $3.7 billion Ponzi scheme.
The change would limit the recovery of investment income earned by charitable or religious organizations that took gifts from Petters or his associates, Minnesota Public Radio (http://bit.ly/2oLahkO ) reported. The law change would make clear that multiple kinds of donations can be protected after a certain time limit.
Some charitable foundations confronted by claims from a court-appointed receiver support the change. But the receiver, Minneapolis attorney and former white-collar prosecutor Doug Kelley, says it could take $35 million off the table.
“That would be borne not by the taxpayers, but by the victims of the Ponzi scheme,” Kelley said Tuesday before a House-Senate conference committee hashing over differing public safety and judiciary budget plans.