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Dayton Signs Bill Limiting ‘Clawback’ Lawsuits

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ST. PAUL, Minn. (AP) — Gov. Mark Dayton has signed a bill to exempt charitable groups from having to return tainted donations after the expiration of a two-year statute of limitations.

Dayton signed the bill Tuesday. It comes as a trustee for investors and creditors of disgraced Minnesota businessman Tom Petters seeks to reclaim more than $2.3 million in donations that Petters had made to Minnesota Teen Challenge, a nonprofit addiction counseling program.

Trustee Doug Kelley has also filed a “clawback” lawsuit seeking $2 million that the College of St. Benedict received from a Petters-run foundation from 2003 to 2006.

The bill reduces the current statute of limitations on clawback lawsuits from six years to two years. Dayton says he believes the charities are usually blameless and often don’t have the money to repay.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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  • Seth

    This seems like a very worth-while bill. I cannot think of a good reason for charitable organizations to be required to return donations and think it is despicable that one would attempt to retrieve a gift years later. A law such as this one should help protect innocent people and organizations from the legal and financial disruption resulting from fraud artists attempting to reclaim “their” money. Good job Gov. Dayton!

    • joe

      It wasn’t his money to give. It is easy to say that when it isn’t your money that was stolen. I know someone that had money taken by this guy and I am sure I can speak on his behalf and say he wants it back. I guarantee that if the government lost money they would get it back no matter how many years ago it happened.

      • Seth

        Of course it is not Petters who wants the money, it is the victims of his crime that are attempting to minimize their losses. I can feel for those who were abused and robbed in these cases, but I still feel that money donated to charitable organizations should be protected at some point. 2 years makes a lot more sense than 6. What are the organizations receiving gifted money supposed to do? Not use money lawfully given to them until 6 years have passed just in case somebody needs it back? Like the article stated, many of these organizations do not have enough funds to give back the money. Two wrongs still don’t make a right.

  • Jill

    What if money is stolen from one charitable organization and given to another?

    The money should be returned to the people that own it. I guess Dayton would rather ‘feel good’ than do what’s right.

  • Kman

    Jill Lets Hope they can Figure it out in Two Years other wise the Person that took it in the First Place can Pay it Back

    • Jill

      Huh? The person that took it in the first place doesn’t have it. He’s like the government: he took from one and gave to another.

      Dayton is a knee jerk liberal with no capability to analyze anything.

    • Jill

      Huh? I think you are confused. The person that took it in the first place doesn’t have it. He’s like the government: He took from one and gave to another.

      Dayton is a knee jerk liberal with no capability to analyze anything.

    • Jill

      Huh? You are confused. The person that took it in the first place doesn’t have it. He’s like the government: He took from one and gave to another.

      Dayton is a knee jerk liberal with no capability to analyze anything.

      • Death

        Repeat yourself much? Also, the bill was drafted & passed my knee jerk Repulicans, with no capability to analyze anything.

  • Really?

    How much has the “trustee” made off illgotten gains to date? Lets see Full disclosure Kelley. Waiting. While I agree Petters did wrong, the only ones who are profiting are the “trustees” or whomever he appoints. Typical hypcocrasy.

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