Judge declines to order restitution for victims defrauded by Minnesota businessman Tom Petters

Judge: No restitution for victims of Petters’ scam

MINNEAPOLIS — A federal judge in Minneapolis says he won’t order restitution for victims of Minnesota businessman Tom Petters because the victims can try to recover their losses through other means.

Petters was convicted in December of running a $3.7 billion Ponzi scheme that counted hedge funds, pastors, missionaries and retirees among its victims. He is appealing while serving a 50-year prison sentence.

U.S. District Judge Richard Kyle wrote Thursday that Petters has only $10 million to $20 million in assets while victims have an estimated $2 billion in losses. He says at best, they would recover only pennies on the dollar.

Kyle says Petters’ victims can still recover some money through other channels, including bankruptcy court, where many have already filed claims.