Hedge Fund Sues Petters Law Firm

Feb 17 2012 | 3:20am ET

When it comes to court filings in the Thomas Petters Ponzi scheme case, the runaway winner would almost have to be Ritchie Capital Management.

The Chicago hedge fund was back at it last week, suing Petters' former law firm for having "materially aided" the $3.65 billion fraud. Ritchie's complaint alleges that Minneapolis-based Fredrikson & Byron "substantially assisted or encouraged" the actions by Petters and his deputies that rendered a $150 million loan to the fraudster "worthless."

Fredrikson said the suit "has no merit and will be dismissed because it does not describe a single fact that would support a claim that our law firm did anything wrong or had any knowledge whatsoever of the Petters fraud."

Ritchie's lawsuit also names Petters whistleblower Deanna Coleman, the former vice president of operations at his firm who pleaded guilty in the case and was sentenced to one year in prison.

Ritchie has previously sued two other former Petters executives and former Petters portfolio company Polaroid Corp. The hedge fund itself has been sued several times in the case, by the court-appointed receiver, Barclays Bank and Polaroid.


In Depth

Q&A: Filippo Pignatti Morano On The Ultimate Alternative Investment...Classic Cars

Jan 29 2015 | 12:37pm ET

In 2011, Filippo Pignatti Morano launched a fund to invest in classic cars. FINalternatives...

Lifestyle

Looking For A Hedge Fund Manager? Try Davos

Jan 28 2015 | 8:48am ET

Davos, Switzerland seems to have become the hedge fund capital of the world—at...

Guest Contributor

Five Tips For Successfully Marketing Your Hedge Fund

Jan 30 2015 | 9:14am ET

When it comes to the hedge fund industry, the notion of “build it and it will...

 

Editor's Note