Petters bankruptcy case trustee sues former Milwaukee-based M&I Bank

By: Associated Press//November 14, 2012//

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MINNEAPOLIS (AP) – 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 in excess of $50,000, calls the account’s deposits “astronomical,” and says M&I was never given “a valid business reason for such a staggering amount.”

A spokesman for Chicago-based BMO Harris says the claims are without merit.

Information from: Star Tribune, http://www.startribune.com

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