December 18, 2012
Minnesota law helps charities limit their exposure to clawbacks
by Jon Tevlin, Star Tribune
Unfortunately, the money didn't belong to the businessman, Tom Petters, who was eventually convicted of running one of the nation's largest Ponzi schemes.
Years after spending the money Petters gave them, BBBS and many other nonprofits faced the possibility of financial clawbacks, which would have forced them to pay back all of the money. The prospect for the agency was potentially devastating, said Robert McCollum, a board member.
"These are difficult times for all nonprofits," said McCollum. "It would have had a big impact on programs and the number of people they could serve."
April 3, 2012
Minnesota Lawmakers Seek to Protect Nonprofits From Clawbacks
By Jacqueline Palank, Wall Street Journal
That’s the idea behind the bill that now sits on the governor’s desk. If signed into law, the bill would limit the odds that these organizations could be sued under a current state law allowing the reversal of payments made in a fraudulent manner, according to the Star Tribune.
April 2, 2012
Governor signs legislation protecting non-profits from Ponsi clawback claims
MINNEAPOLIS (WCCO) – It has been more than two years since Tom Petters was found guilty of running a $3.5 billion Ponzi scheme.
But the effort to recover money for Petters’ victims, some of which are in bankruptcy, has run smack into concerns by charities that received millions in donations from Petters and rely on that money to operate.
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