$564 Million Petters Ponzi Scheme Verdict Reversed

UNDATED (WJON News) -- The U. S. 8th District Court of Appeals has reversed a previous verdict against BMO Financial Group and its subsidiary BMO Bank National Association. The court reversed the $564 million dollar verdict against the bank in the $3.65 billion dollar Ponzi scheme orchestrated by Twin Cities-based Petters Company, Inc. and its owner Tom Petters.

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In November of 2022, a jury awarded $564 million in damages to victims of the scheme. The lawsuit alleged that between 1999 and 2008 before Marshall and Isley Bank was acquired by BMO in 2011, that it facilitated the Ponzi scheme operated by Petters. At the time, BMO denied the allegations and stated they would appeal the verdict. A spokesperson for BMO says they are very pleased with the decision of the court of appeals.

Petters was sentenced to 52 years in federal prison in April of 2010 on 10 counts of wire fraud, 3 counts of mail fraud,1 count of conspiracy to commit mail and wire fraud, 1 count of conspiracy to commit money laundering, and 5 counts of money laundering.

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