Republican Presidential Candidate Hit With Petters Clawback Suit

Dec 7 2011 | 2:51am ET

A bankrupt hedge fund is suing Republican presidential hopeful Michele Bachmann to recover campaign contributions she received from Ponzi scheme Thomas Petters' chief fundraiser.

Bachmann, a congresswoman from Minnesota, received $27,600 from Vennes between 2005 and 2008. Bachmann had pushed for a presidential pardon for Vennes, who is now accused of fraud and money laundering in Petter's $3.65 billion fraud, although she withdrew he letter of support after Vennes was linked to Petters.

The clawback lawsuit filed by Barry Mukamal, the trustee for Palm Beach Capital Management's funds, does not accuse Bachmann of any wrongdoing or knowledge of the Petters fraud.

Palm Beach's principals, David Harrold and Bruce Prevost, pleaded guilty to misleading investors in April. According to prosecutors and the Securities and Exchange Commission, Palm Beach swapped old promissory notes it bought from Petters for new ones, hiding the exchanges from investors. Palm Beach's assets made up more than $1 billion of the $3.65 billion invested in the Petters Ponzi scheme.


In Depth

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Cash: An Asset In Adolescence

Aug 31 2017 | 3:34pm ET

If the investment industry has a rebellious teenager in the house today, that teenager...

 

From the current issue of