Ritchie Capital Sues Former Petters Executives

Nov 24 2009 | 12:15pm ET

Having already been sued itself for its alleged role in the Thomas Petters fraud case, hedge fund Ritchie Capital Management is doing some suing of its own. Lisle, Ill.-based Ritchie has sued two former Petters executives, accusing both of fraud.

The hedge fund alleges that Mary Jeffries, former chief operating officer at Petters Group Worldwide, and Camille Chee-Awai, former CEO of Petters Capital, defrauded Ritchie of $100 million. The hedge fund said it made the loan to the Petters companies backed by the assets of Polaroid Corp., which the accused fraudster owned. But after the Petters business empire collapse following his arrest last year,  Polaroid was sold off for $88 million to recoup money for Petters’ alleged victims.

Ritchie filed its suit against the executives after failing to stop that sale.

The fate of Petters himself, accused of masterminding a $3.6 billion Ponzi scheme, is now in the hands of a St. Paul, Minn., jury.

Last year, Barclays sued Ritchie, accusing it investing more than $150 million with Petters while it was supposed to be winding down.


In Depth

Q&A: Old Hill's Stone On Private Debt, P2P And Credit Bubbles

Jun 6 2017 | 7:52pm ET

While institutional capital continues to flow into the broader private debt sector...

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

Steinbrugge: Asia-Focused Hedge Funds Offer Great Opportunities

Jun 23 2017 | 3:33pm ET

Emerging market strategies have outperformed their developed-market peers for five...

 

From the current issue of