Ritchie Capital Sues Former Petters Executives

Nov 24 2009 | 11:15am 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.

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