Judge: No restitution for Petters' victims

A federal judge says he won't order restitution for victims of Minnesota businessman Tom Petters because the victims can try to recover their losses through other channels.

Petters was convicted in December of running a $3.7 billion Ponzi scheme that counted hedge funds, pastors, missionaries and retirees among its victims. He is appealing, and is serving a 50-year prison sentence.

U.S. District Judge Richard Kyle wrote Thursday that determining the amount of victims' losses would be complex and impose a burden on the court. He also says the victims would likely only recover nominal amounts through restitution.

He says Petters' victims can recover some of their losses through other channels, including bankruptcy court, where many have already filed claims.

(Copyright 2010 by The Associated Press. All Rights Reserved.)

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