The Tom Petters saga

  • Updated: November 14, 2012 - 8:50 PM

 

What's new: Petters bankruptcy trustee Doug Kelley sues BMO Harris Bank, accusing it of "aiding and abetting'' the $3.65 billion Ponzi scheme.

The bank: Chicago-based BMO Harris Bank, owned by Canada's Bank of Montreal, inherited the Petters issue when it bought Wisconsin's M&I Bank last year. From 2003 through 2008, Petters Company Inc. had a key bank account at M&I Bank through which $35 billion flowed in the Ponzi scheme, according to the suit.

The swindle: Wayzata businessman Petters and cohorts operated a Ponzi scheme from 1993 to 2008; the business claimed to be buying consumer electronics and other goods from wholesalers and reselling to big-box retailers. In reality, it was faking orders and taking money from new investors to pay off earlier investors. The swindle fell apart in 2008.

So far: Petters is serving a 50-year sentence in Leavenworth. Kelley and a team of attorneys continue trying to recover money for victims. So far about $300 million has been collected.

  • get related content delivered to your inbox

  • manage my email subscriptions

ADVERTISEMENT

Connect with twitterConnect with facebookConnect with Google+Connect with PinterestConnect with PinterestConnect with RssfeedConnect with email newsletters

ADVERTISEMENT

Advertisement
Golden Gavel by Star Tribune

Time left for great deals

Bid thru Sept. 29

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

 
Close