Billion-dollar lawsuit thrown out against Wisconsin bank
Marshall & Ilsley Bank (M&I) based in Wisconsin, recently had a $1 billion lawsuit against it dismissed by a bankruptcy court judge in regards to a Ponzi scheme that was filtered through the bank. The ruling, though, still leaves the bank open to lawsuits from investors who may have been victimized by the scheme.
"This is a major victory," said Florida-based attorney Michael Budwick, who represented the Palm Beach Funds investor groups that initiated the lawsuit. "The bulk of the claims survived … including aiding and abetting fraud and conspiracy and fraudulent transfer claims."
Formerly the largest bank in Wisconsin, M&I was used by Thomas Petters, who ran a multi-billion dollar Ponzi scheme through the bank. The Minnesota-native was convicted in 2009 and is currently serving a 50-year federal prison sentence.
Investors who lost money from Petters say the bank ignored obvious signs of fraud, according to the Milwaukee Journal-Sentinel. The bank says that the billions of dollars that were in Petters' funds were depository accounts and therefore had no special or fiduciary duty to the man's investors. In addition, the bank claimed that the investor groups were looking for a "scapegoat with deep pockets."
Regardless of the bank's actions during the scheme, white collar criminal law can be very complicated and centered around the minute details of bank accounts, cash flow and the red tape that comes with major corporations' financial practices. It can be especially important in these cases that lawyers use the most accurate information, which includes court depositions.
If lawyers wish to use the most accurate court deposition transcripts, they may want to partner with Milwaukee court reporters who can also provide video deposition services to ensure that all aspects of litigation are accurately recorded.
July 31st, 2012 at 11:38 am
Another interesting article.