Nov 14, 2012 at 12:47 pm
MINNEAPOLIS, Minn. (KNSI) 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 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.