Petters Victims Receive Over $22 Million in Forfeited Assets
MINNEAPOLIS – Federal officials Wednesday announced over $22 million will be distributed to victims of the Tom Petters Ponzi scheme.
The US Department of Justice says the funds will compensate around 364 victims of Petters Group Worldwide, which stole over $2 billion from investors in a Ponzi scheme.
Petters, a St. Cloud native, was indicted in 2008 on multiple counts of mail fraud, wire fraud, money laundering, and conspiracy. The following year, a federal jury found Petters guilty of all 20 counts against him. He received a 50-year federal prison sentence.
As part of sentencing, Petters and other defendants were ordered to forfeit assets, including real estate, bank accounts and vehicles. Under federal law, the Department of Justice has the authority to distribute the proceeds of forfeited assets to victim investors who lost money in connection with the scheme.
Federal officials ordered over $16 million to be distributed to Petters’ victims in 2018, bringing the total asset payout to more than $38 million dollars.