Bankruptcy Law News

BMO Harris Must Faces $3.5 Billion Trial Over Ponzi Scheme (1)

March 13, 2020, 11:31 PM

BMO Harris Bank, a unit of Bank of Montreal, must face billions of dollars in investor claims tied to a massive Ponzi scheme run by former client Tom Petters, a judge ruled.

A request by BMO Harris to have the case thrown out before trial was rejected Friday by a federal judge in St. Paul, Minnesota. The claim was brought by a court-appointed trustee seeking to recover money for a group of hedge funds that were victimized in the fraud.

Petters, a Minnesota businessman, convinced investors he and his associates were financing the purchase of consumer electronics...

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