Justices Deny Review of Bankruptcy Trustee’s Petters Ponzi Case

The US Supreme Court declined to hear a case brought by the trustee of the BMO Litigation Trust, established in the Petters Co. bankruptcy, seeking to overturn a ruling that nullified a billion-dollar judgment for Ponzi scheme victims.

Douglas A. Kelley, who previously served as the equity receiver for Petters Co. and later as its Chapter 11 trustee, asked the high court to weigh the applicability of the “in pari delicto,” or “equal fault,” defense that barred his suits against BMO Harris Bank, the successor-in-interest to M&I Bank. The trustee previously sued the bank, alleging that M&I aided the Ponzi ...