Meyer Wilson | Investor Claims In the News
Ponzi Scheme Leads to Suit Filed Against University of Chicago Trustee
Posted on Oct 27, 2010
A hedge-fund operator, who is also a University of Chicago trustee, has been sued for his alleged participation in a $40 billion Ponzi scheme. Steve G. Stevanovich has been accused of reaping over $323 million in “false profits” through his involvement in the investment scam.
In 2006, University of Chicago graduate Steve G. Stevanovich donated $7 million to start the Stevanovich Center for Financial Mathematics. Mr. Stevanovich allegedly used the organization as a feeder fund for the Minneapolis-based Petters Co.
The trustee in the bankruptcy case of Petters Co. has brought the suit against Mr. Stevanovich. The founder of Petters Co., Tom Petters, was recently convicted of operating a $40 billion Ponzi scheme. He was convicted of wire fraud, mail fraud and money laundering. Mr. Petters was sentenced to 50 years in prison.
The suit is intended to recoup gains that Mr. Stevanovich’s feeder fund may have received through its relationship with Petters Co.
However, Mr. Stevanovich defended his position through a spokesperson. “We terminated our relationship with Petters a full 18 months before allegations surfaced,” the spokesperson said. “We did so because we elected to invest our capital in other enterprises, not because we believed or had cause to believe that the Petters enterprises were engaged in fraudulent activities.”
J.P. Morgan Chase and Co. and Ritchie Capital Management LLC have also been named in the lawsuit.
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