The Bank of Montreal takes a provision of $1.1 billion related to fraud in the United States

Published on 11/09/2022 at 15:09

The Bank of Montreal felt it had strong grounds to appeal. (Photo: The Canadian Press)

The Bank of Montreal said Wednesday it will take $1.12 billion in provisions after a US jury found him responsible for a pyramid scheme involving investments allegedly facilitated by a bank that bought it.

The Toronto-based bank said a jury awarded $564 million in damages to US bank BMO Harris, while potential interest charges on the alleged actions, which would have occurred between 1999 and 2008, could increase that cost. more.

The bank said it will appeal the decision to the U.S. Court of Appeals for the Eighth Circuit, and will file post-trial motions to overturn the ruling or reduce damages.

The Bank of Montreal said it was disappointed with the ruling and said it had strong reasons to appeal.

It claimed that due to previous settlements, it was entitled to recover approximately 21% of the damages. After taxes, the bank expects to charge C$830 million in the fourth quarter as a result of the decision.

The bank acquired Marshall and Ilsley Bank in 2011, which allegedly facilitated the scheme devised by Thomas J. Peters and others. Mr. Peters was convicted in 2009 of organizing a $3.65 billion scheme.

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