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JPMorgan Beats Claims Tied to Multibillion-Dollar Ponzi Scheme

July 1, 2021, 4:21 PM

JPMorgan Chase & Co. and related entities are free of allegations related to a multibillion-dollar Ponzi scheme because the plaintiffs lacked standing to bring some claims and waited too long on others, a federal judge in Minnesota said.

The plaintiffs loaned money to Ponzi scheme perpetrator Tom Petters so he could repay the banks before his scheme collapsed. They blamed JPMorgan and the other defendants for allegedly encouraging them to loan the money, but none of those claims can go forward, the U.S. District Court for the District of Minnesota said.

The complaint alleged that JPMorgan aided and abetted ...

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