BMO Harris ordered to pay $564M in Ponzi scheme case – By Dan Ennis – Dive Brief:

  • A jury in a Minnesota bankruptcy court Tuesday ordered BMO Harris Bank to pay $564 million in damages in connection with a Ponzi scheme orchestrated by a client of a bank BMO acquired.
  • BMO plans to “file a number of post-trial motions … to reverse the verdict or reduce the damages, and we intend to pursue all avenues” to overturn the outcome, including appealing the case to the 8th U.S. Circuit Court of Appeals, the bank said in a statement.
  • The bank will take a C$1.12 billion ($833.6 million) charge from the judgment — a total that includes interest payments it may have to make. That will result in a $617.8 million after-tax charge to be recorded in this year’s fourth quarter, BMO said.
  • More…