« Continue Browsing

e-mail article Print     e-mail article E-mail

Associated Press , Published November 14 2012

Petters bankruptcy case trustee sues BMO Harris

MINNEAPOLIS — The bankruptcy trustee recovering money for victims of the Ponzi scheme operated by imprisoned Minnesota businessman Tom Petters is suing BMO Harris Bank, accusing it as the owner of M&I Bank of aiding and abetting the fraud.

The lawsuit filed in federal bankruptcy court in Minnesota Wednesday accuses the formerly Milwaukee-based M&I Bank of turning a blind eye to $35 billion that flowed in and out of the main bank account that Petters Company Inc. used to finance the $3.65 billion Ponzi scheme for more than five years.

The Star Tribune reports (http://bit.ly/SoJKST ) the lawsuit, which seeks unspecified damages, calls the account's deposits "astronomical," and says M&I was never given "a valid business reason for such a staggering amount."

A spokeswoman for Chicago-based BMO Harris Bank had no immediate comment.


Information from: Star Tribune, http://www.startribune.com

Copyright © 2012 The Associated Press. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press.