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.

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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.

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