GE Capital, Petters Case Enters Discovery Phase



According to the Minneapolis Star Tribune, a billion-dollar legal battle is brewing in Florida over who knew what and when about the decade-long Ponzi scheme operated by former Wayzata businessman Tom Petters.

The Tribune notes that the suit, filed nearly two years ago, is about to enter an intense discovery phase, including depositions of principal players in the case. A trial is still more than a year away.

The Tribune said that the bankruptcy trustee for two failed Florida hedge funds that lost more than $1 billion in the Petters operation accuses GE Capital of failing to warn regulators or law enforcement that it detected the fraud eight years before the scheme crashed in late 2008.

To view the full Star Tribune report, click here.

Previously on monitordaily:

Forbes: GE Capital Could Have Stopped Petters’ Ponzi Scheme

Estate of Defunct Palm Beach Finance Sues GE Capital


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