Ted Mondale to Pay $50K in Petters Clawback
More than three years after Ponzi schemer Tom Petters was sentenced to half a century in prison, a receiver continues his quest to track down funds in order to turn them over to fraud victims.
And Ted Mondale—executive director of the Minnesota Sports Facilities Authority and the son of former Vice President Walter Mondale—is the latest to agree to hand over money in one of the so-called “clawback” cases, according to a report by the Star Tribune.
Mondale has reportedly agreed to hand over $50,000 to receiver Doug Kelley, to cover an unpaid personal loan of $150,000 provided by Petters in 2005.
The settlement is one of several that Kelley has negotiated with former Petters business associates as part of the “clawback” process, through which the receiver is attempting to recover transactions that Petters made using ill-gotten proceeds.
The $50,000 payment was negotiated between Kelley’s office and Mondale and included a review of Mondale’s financial situation by former federal agents working for Kelley, according to the Star Tribune. A motion by Kelley to accept the payment was expected to be heard by U.S. District Judge Ann Montgomery on Tuesday.
Kelley is also expected to ask the judge to approve settlements of $16,400 from Richard Wolbert, a former Petters business associate from Milaca who received $600,000 in 2005 from Petters, and Stephen Ratliff, a former executive with Polaroid, a firm Petters owned, according to the Star Tribune.
Mondale—who, prior to his current role, served two terms in the Minnesota Senate and served as chairman of the Metropolitan Council—is now responsible for overseeing the construction of a new stadium for the Minnesota Vikings.
Mondale joined the Petters operation as a senior vice president in 1999 to look for Asian manufacturers of consumer electronic goods, according to the Star Tribune. He reportedly held a series of positions with Petters until he resigned in 2003 to run a start-up software company.
Kelley has reportedly said that Petters made a $150,000 personal loan to Mondale in 2005 in lieu of increasing his stake in that start-up. The loan carried a 10 percent interest rate and was due in December of 2006, one year after it was made, but it was not repaid, the Star Tribune reported.
To read more in the Star Tribune, click here.