White-Collar Crime

Minnesota lawmakers have passed legislation to protect nonprofits and religious groups from the so-called clawback lawsuits that are a crucial tool for recovering funds stolen from Ponzi-scheme victims.

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.

This week on The Broke and the Beautiful, Lenny Dykstra gets prison time and the owners of the New York Mets must pay up. Also, a judge wants the Los Angeles Dodgers and Bryan Stow to settle their dispute.

Lehman Brothers Holdings Inc. on Tuesday officially emerged from Chapter 11 bankruptcy protection after nearly 3 1/2 years and said creditors of the investment bank will start getting paid next month. Read the Daily Bankruptcy Review article via The Wall Street Journal.

A Birmingham, Ala., judge ruled that Jefferson County can move forward with its Chapter 9 bankruptcy case—the largest municipal case in U.S. history—against the efforts of big Wall Street banks that argued that it should be thrown out because of fine print in Alabama state law. Read the Daily Bankruptcy Review article via The Wall Street Journal.

This week on The Broke and the Beautiful, Kodak wants to reject an agreement with the PGA Tour and stars in Billy Crystal’s Oscars jokes. Also this week, Oscar winner Meryl Streep donates money to a school in Central Falls, R.I.