Zions Bancorp. is a defendant in a suit alleging that a borrower was involved with a Ponzi scheme, according to the bank's Form 10-K.
The trustee for borrower International Manufacturing Group alleged that the borrower and its principal obtained loans from the bank and repaid those loans in furtherance of an alleged Ponzi scheme, and is seeking the recovery of those payments.
The suit, McFarland as Trustee for International Manufacturing Group v. CB&T, et. al., was brought against the bank in the United States Bankruptcy Court for the Eastern District of California in May 2016. The bank said the case is in an early phase.