BMO Harris Bank agrees to settle fraud claims against acquired unit

0
© Reuters. BMO Harris Bank agrees to settle fraud claims against acquired unit© Reuters. BMO Harris Bank agrees to settle fraud claims against acquired unit

(Reuters) – BMO Harris Bank NA will pay $10 million to resolve allegations against Marshall & Ilsley Bank, which it bought in 2011, that the bank facilitated fraud by Minnesota businessman Thomas Petters, the Department of Justice said on Friday.

The settlement involves no determination of liability, the DOJ said, adding that the settled claims relate exclusively to conduct by M&I Bank prior to its acquisition by BMO Harris.

“While we dispute the allegations in this matter, we’re pleased that it has come to a conclusion. We note that the allegations related to activity that ended before we acquired M&I in 2011,” BMO Harris, whose parent company is Bank of Montreal (TO:), said in an e-mailed statement.

“M&I co-operated fully with law enforcement, and no charges were brought against the bank,” it said.

A federal jury in 2009 found Petters guilty of orchestrating a $3.65 billion Ponzi scheme, and he was sentenced to 50 years in prison.

Prosecutors alleged that Wisconsin-based Marshall & Ilsley Bank staff knowingly made false promises to Petters’ investors that they would monitor and protect accounts holding proceeds from their investment. This facilitated Petters’ scheme and resulted in millions of dollars in losses to investors, the DOJ said

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.