Petters bankruptcy trustee sues J.P. Morgan Chaseby Martin Moylan, Minnesota Public Radio
St. Paul, Minn. — The attorney overseeing the bankruptcy of Tom Petters' business empire has sued J.P. Morgan Chase, the nation's second-largest bank. Doug Kelley, the court-appointed receiver in the Petters' bankruptcy, wants about $25 million from the bank.
Kelley says the money should be available to compensate victims of Petters' Ponzi scheme. But Kelley argues the bank illegally took the money from a Petters' investment account to cover a debt Petters owed the bank.
"These were Tom Petters personal accounts," said Kelley. "This $25 million -- we view this as JP Morgan just trying to get ahead of all the other creditors, and to do that unilaterally."
The bank had no comment on the lawsuit. Kelley has filed about 200 lawsuits seeking to recover money for people who lost billions of dollars investing with Petters.
Kelley is trying to get about $2 billion from people who allegedly profited from investing with Petters. So far, he's collected about $200 million. Petters, 53, is in a federal prison, probably for the rest of his life.