M&I Bank accused of aiding and abetting Petters fraud

Author:: BMTN Staff
Updated:: Mar 8, 2018
Original:: Nov 14, 2012

The bankruptcy trustee recovering money for victims of the $3.65 billion Ponzi scheme orchestrated by Twin Cities businessman Tom Petters is suing Chicago-based BMO Harris Bank, which now owns the formerly Milwaukee-based M&I Bank, the Star Tribune reports.

The lawsuit claims bankers at M&I Bank turned a blind eye to $35 billion funneled in and out of the main account used by Petters Companies Inc. between between 2003 and 2008.

In an e-mail sent to the Pioneer Press, Jim Kappel, the bank's vice president and head of media relations said, "We believe the claims in the suit are completely without merit and we intend to vigorously defend ourselves in this matter."

Toronto-based BMO Financial Group acquired M&I Bank in December 2010 and officially made the switch in October 2012.

Petters is currently serving a 50-year prison sentence for his fraud conviction.

DONTCHA KNOW?

You Can Get BMTN Special Offers!

Get Our Newsletter

police-1499374_1280

The assault happened in Stearns County, with the truck stopped in Otter Tail County.

Target Field squirrel

The squirrel is back!

Del Monte

The plant has been in town for 89 years.

Demry Croft

Croft last played for the Gophers in 2017.

swimming-beach-summer-minneapolis-park

As of Wednesday, the meteorological winter begins in 103 days.

canoe

They were found hours later in a very remote wooded area.

Screen Shot 2019-08-20 at 1.02.20 PM

Police suspect the nails and screws were purposely thrown onto roads.

Grand Marais

One responder called it 'tantamount to bullying.'

explosives

It was found by a woman cleaning her house.

Nick Anderson

He's gone from an unknown to unhittable in quick fashion.

University of St. Thomas

The JRC has been evacuated.

Jimmy_fallon

TV, Movies and The Arts

New guidelines on what projects can receive state-funded rebates come after controversy over Fallon's Super Bowl broadcast.

The Minnesota businessman had asked the nation's highest court to review his case. Petters was convicted on charges of orchestrating a $3.65 billion Ponzi scheme and is serving a 50-year prison sentence. His attorneys argued that the trial judge barred them from presenting evidence.

Petters continues to argue his Sixth Amendment rights were violated because he wasn't allowed to fully question certain witnesses. The full 8th Circuit Court of Appeals denied the former Minnesota businessman's request last year. Petters is serving a 50 year sentence for orchestrating a $3.65 billion Ponzi scheme. He was convicted in 2009.

Frank Vennes and James Fry will go to trial in February after pleading not guilty to a total of 31 criminal counts, the Pioneer Press reports. The charges include wire fraud, money laundering and making false statements. Both men are accused of helping convicted Twin Cities businessman Tom Petters carry out his $3.5 billion Ponzi scheme.

A federal appeals court has ruled that Minnesota businessman Tom Petters received a fair trial. He was convicted and sentenced to 50 years in prison for orchestrating a multi-billion-dollar Ponzi scheme.