JP Morgan Chase sued to recover Petters fraud fundsby Martin Moylan, Minnesota Public Radio
St. Paul, Minn. — The attorney overseeing the bankruptcy of Tom Petters' business empire has sued the nation's second-biggest bank.
He hopes to recover money that could compensate victims of Petters' massive investment fraud.
Doug Kelley, the court-appointed receiver in the Petters' bankruptcy, sued JP Morgan Chase for $25 million. He said the money should be available to Petters' victims.
Kelley argues the bank illegally took the money from a Petters' investment account to cover a debt of Petters. The bank had no comment on the lawsuit.
Kelley has filed about 200 lawsuits, seeking to recover about $2 billion from people who managed to make money investing with Petters.
"I hope some of the people in the Petters case will just pay it back without us having to have protracted litigation," he said. "You'd be surprised how many people we do send out demand letters to and we just get a check in the return mail."
So far, Kelley has collected about $200 million.