Thursday, September 23, 2010

Fraud Experts Decry Federal Self-Dealing After $3.6 Billion Ponzi Aftermath - Bankruptcy Corruption.

"Corporate turn-around expert William Procida and hedge fund founder Thane Ritchie were DC Update guests Sept. 2 on the My Technology Lawyer Radio Network as they provided first-hand accounts of federal court irregularities in Minnesota that they claim victimize lenders and investors in one of the largest Ponzi schemes in U.S. history.

During the show, they told co-hosts from the Justice Integrity Project and network founder Scott Draughon about why they’re speaking out against federally orchestrated injustices hurting the fraud victims of Minnesota businessman Thomas J. Petters.

The latter’s Ponzi scheme discovered in 2008 caused estimated damages of $3.65 billion ─ including to lenders and investors in such Petters-controlled companies as Polaroid, Sun Country Airlines and the distributor Fingerhut. Ritchie claims more than $220 million in loans and interest at serious risk.

“I’ve never seen a criminal’s attorney be a receiver,” Procida says of disputed court orders that made former Petters defense attorney Douglas Kelley receiver and also the U.S. trustee.

The court also gave Kelley “judicial immunity,” thereby limiting victim oversight of his controversial decisions.

-- Andrew Kreig "