Chicago-based BMO Harris Bank NA is set to pay $10 million to settle claims that Milwaukee-based M&I Marshall & Ilsley Bank, which BMO Harris Bank acquired in 2011, engaged in fraud related to Thomas Petters' multibillion-dollar Ponzi scheme.

A federal jury convicted Petters in December 2009, and he was sentenced to 50 years in prison.

M&I Marshall & Ilsley Bank is accused of participating in a fraudulent scheme by entering, at Petters' request, "deposit account control agreements," which wrongly promised investors that the bank would monitor Petters Co. Inc.'s depository account held at the bank on their behalf and would protect their investment proceeds with Petters.