GE Capital to Repay $19 Million in Petters Settlement
MINNEAPOLIS (AP) — General Electric Capital Corp. has agreed to repay $19 million in interest and principal it received from the $3.65 billion Ponzi scheme Minnesota businessman Tom Petters was convicted of orchestrating.
In documents filed in U.S. Bankruptcy Court in St. Paul, the Norwalk, Conn.-based lender denied "any and all liability." But GE Capital agreed to pay after a confidential mediation process with Petters bankruptcy trustee Doug Kelley.
GE Capital was at one time one of the principal lenders to Petters and his business interests. Petters is serving a 50-year sentence after his 2009 conviction. He maintains his innocence.
The Star Tribune (http://bit.ly/MYXRj9) reports the GE settlement is the largest to date in a series of lawsuits seeking to "clawback" false profits collected by investors and others who did business with Petters.
Information from: Star Tribune, http://www.startribune.com
Copyright 2012 The Associated Press.