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Petters Sues Insurers for Defense

MINNEAPOLIS (CN) - Petters Group Worldwide sued two insurers, claiming Greenwich Insurance and XL Specialty Insurance owe it legal defense, as Petters was insured for "wrongful acts." A federal judge has frozen $3 billion in Petters assets, and the company, its boss Thomas J. Petters, and other executives face criminal and civil federal charges and multiple civil lawsuits.

On Dec. 1, 2008, Petters and his company were indicted on 20 counts, including fraud, conspiracy and money laundering.

Petters, in this federal complaint against the insurers, lists at least other eight civil lawsuits from disgruntled investors. Petters says federal prosecutors sought, and a judge granted, a request "to freeze up to $3 billion of the [Petters] defendants' assets."

Petters is represented by Paul Banker with Lindquist & Vennum.

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