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St. Paul, Minn.

October 7, 2010 7:29 PM

KSTP TV personality targeted in Petters fraud lawsuits

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A TV personality who used to work for convicted businessman Tom Petters faces a lawsuit seeking to recover $178,000 in bonuses he received as a Petters employee.

KSTP-TV sports director Joe Schmit is one of a slew of former Petters employees investors and others being sued by a bankruptcy trustee trying to recover money for Petters' creditors.

Trustee Doug Kelley says he's willing to consider arguments that the bonus payments were justified because he says Petters' records are "not the best."

"We're going to be sitting with people and if they can demonstrate that they had a reasonable contract for a certain salary and then they had bonuses and they were going to get the bonuses based on X, Y, Z performance, then we will listen to that and will give them credits," he said.

KSTP's website had a statement from Schmit saying he was recruited in 2006 and accepted a multi-year contract that included bonuses and equity options.

Schmit says he never would have taken a job without a written contract that spelled out the financial details.

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