The Minnesota Supreme Court on Feb. 18 rejected the “Ponzi Scheme Presumption” that had been the foundation for so many “claw back” claims against banks and other financial institutions receiving credit repayments from the likes of Tom Petters, Corey Johnston and others, according to a client note from Briggs and Morgan. In its decision in Finn v. Alliance Bank, the state's high court rejected the receiver's "Ponzi scheme presumption" theory by which the receiver would have had the courts strip the banks of traditional defenses. In effect, the court ruled that lenders are entitled to summary judgment when the transactions at issue involve legitimate loans that were repaid in the normal course, according to the analysis. Click here to read the court opinion: http://www.mncourts.gov/opinions/sc/current/OPA121930-021815.pdf
