Fox Business reported a lawsuit against General Electric Company's Finance unit over its relationship with Thomas Petters will move to trial. According to the Fox Business report, Judge Paul Hyman refused to dismiss the federal lawsuit that accused the GE Unit of conspiring to commit fraud by not exposing the fraud when it was allegedly revealed by the company's employees that Petters was operating a Ponzi scheme.

According to Fox Business, in 1998, GE Capital, loaned money to a Petters-controlled business, according to court papers. When GE allegedly discovered the fraud several months later, it struck a deal to be repaid and wrote a recommendation letter that Mr. Petters and his colleagues used to get more investors, according to the lawsuit filed in U.S. Bankruptcy Court in West Palm Beach, Fla.

Read the full Fox Business report here.

Previously reported on Equipment Finance Advisor:

May 31, 2012 - GE Capital to Pay $19 MM in Largest “Clawback” in Petters Ponzi Scheme

August 26, 2013 - WSJ: Lawsuit Against GE Capital Over Petters Fraud to Move Ahead