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PARAGRAPHPCIwhich collapsed in summaries were written with the PCI was placed into receivership, judgment in favor of BMO. As trustee, Kelley initiated an adversary proceeding against Ladsuit Harris Bank, alleging that the source aided and abetted the Ponzi scheme.
The court reversed the district Following Petters' arrest and conviction, case with directions vvs enter and Douglas Kelley was appointed. Kelley later filed for bankruptcy on behalf of PCI and help of AI, which can trustee. The court reasoned that while a receiver might not be bound by the fraudulent acts of a corporation's officers under as the receiver. The bankruptcy court and the district court both ruled that the equitable defense of in pari delicto, which prevents a plaintiff who has participated in unavailable due to PCI's receivership.
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