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Twin Cities restaurateur files Chapter 7 bankruptcy

Champps and Redstone American Grill founder Dean Vlahos told the Star Tribune he lost $26 million as a result of his onetime pal Tom Petters' $3.65 billion Ponzi scheme. He's now looking to escape nearly $12 million in debt.
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Champps and Redstone American Grill founder Dean Vlahos told the Star Tribune he lost $26 million as a result of his onetime pal Tom Petters' $3.65 billion Ponzi scheme. He's now looking to escape nearly $12 million in debt.

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Feds to seize Twin Cities home tied to Petters' Ponzi scheme

The U.S. Attorney's Office was given the go-ahead Wednesday by a federal judge to seize a Minnetrista home that was purchased with proceeds from the Tom Petters' Ponzi scheme. The house until recently was occupied by Allen Munson, the ex-husband of former Petters' associate, Deanna Coleman.

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A federal appeals court has ruled that Minnesota businessman Tom Petters received a fair trial. He was convicted and sentenced to 50 years in prison for orchestrating a multi-billion-dollar Ponzi scheme.

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The receiver in the Tom Petters 'clawback' effort filed a lawsuit to recover a $2 million donation to the College of St. Benedict. The imprisoned businessman donated to the school starting in 2003. A court convicted Petters in 2009 of running a multi-billion dollar Ponzi scheme. College officials say the money was already spent on renovation and construction projects.

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