GE Agrees To Pay $19 Million In Minnesota Ponzi Scheme Case -Report

05/31/2012| 08:57am US/Eastern

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General Electric Corp. (>> General Electric Company) has agreed to repay $19 million in lending proceeds linked to a former Minnesota businessman convicted of running a massive Ponzi scheme, the (Minneapolis) Star Tribune reported Wednesday on its website.

GE was a principal lender to Tom Petters, who was found guilty of orchestrating the Ponzi scheme and sentenced to 50 years in prison. Petters is appealing the verdict.

GE, in a filing in the U.S. Bankruptcy Court in St. Paul, Minn., agreed to the $19 million payment but denied "any and all liability." The action came after confidential mediation talks with Petters bankruptcy trustee Doug Kelley.

GE declined comment to the Star-Tribune.

Full story at: www.startribune.com/business/155839075.html

-Dow Jones Newswires; 212-416-2900

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