Petters Receiver Seeks More Bonus Money From Exec

Michael O’Shaughnessy allegedly received $670,000 in fees and bonuses from convicted Ponzi schemer Tom Petters, and court-appointed receiver Doug Kelley is trying to recover it so that it can be used to help repay victims of Petters’ fraud scheme.

A former executive of Polaroid and other corporate entities owned by fraudster and former Wayzata businessman Tom Petters is reportedly on the hook for another $670,000.
According to a Star Tribune report, court-appointed receiver Doug Kelley is seeking the money from Michael O’Shaughnessy, who allegedly received that much in fees and bonuses from Petters while Petters ran his $3.65 billion Ponzi scheme.
Kelley reportedly said in a lawsuit filed earlier this week that the money constituted “fraudulent transfers” and that O’Shaughnessy should return it to the Petters receivership so that it can be used to help repay victims of Petters’ fraud scheme.
According to the Star Tribune, the suit claims that, “O’Shaughnessy knew of the fraud, or willingly ignored it, and accepted these payments and gifts from the scheme.”
The $670,000 isn’t all that’s being sought from O’Shaughnessy. Trustees for the Petters bankruptcy case and the bankruptcy proceedings of Polaroid are seeking another nearly $9 million in payments that he received from Petters.
Petters, who is serving a 50-year prison sentence, broke his silence in 2012, speaking from prison in an exclusive interview with Twin Cities Business Editor in Chief Dale Kurschner. To read the resulting feature story, click here.
Last month, alleged co-conspirator James Fry, whose case is expected to close a chapter in the long and complicated Petters saga, pleaded not guilty for a second time.
Of the 13 people charged in relation to the Petters fraud, only Petters has gone to trial: The rest, with the exception of Fry, have pleaded guilty to the charges against them, according to the Star Tribune.