Trustee Irving Picard sues JPMorgan Chase for Madoff fraud

Monday, September 15th, 2014 By

Outdoor photo of one of JPMorgan Chase & Co's offices, taken in the late afternoon/early evening.

JPMorgan Chase may be on the hook for billions of dollars for allegedly aiding and abetting Bernie Madoff. (Photo Credit: CC BY-ND/Market Mix Up)

The latest chapter in the Bernie Madoff financial scandal involves one of the United State’s largest banking and investment companies, reports PR Newswire. It has been announced via press release that Irving Picard, the trustee for liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), is filing a complaint in U.S. Bankruptcy Court for the Southern District of New York against several arms of JP Morgan Chase , including banks and securities companies. Picard seeks to recover $1 billion in fees and profits, plus $5.4 billion in damages for Madoff clients, from JPMorgan Chase, previously BLMIS’ primary banker. The allegation is that JPMorgan Chase aided and abetted Bernie Madoff and company in the largest known Ponzi scheme in U.S. history.

Case says JPMorgan Chase was center of Ponzi scheme

David Sheehan, court-appointed counsel for Irving Picard, said that “JP Morgan was willfully blind to the fraud, even after learning about numerous red flags surrounding Madoff.” While JPMorgan Chase was not the only financial organization involved in Bernie Madoff’s intricate investing scheme, Sheehan places the banking and investment corporation at the center of the misdeeds and says it was thoroughly complicit, despite knowing of various warning signs regarding Madoff’s activities over the span of 20 years. Despite what the prosecution calls overwhelming evidence, JPMorgan Chase says it “simply continued to collect fees and derive profit.” Without JPMorgan Chase’s participation, says Sheehan, the Madoff Ponzi scheme would not have been possible.

Currently, nearly all financial data involved in the complaint is filed under seal with the Bankruptcy Court. This is because JPMorgan Chase has designated all of the information confidential. Picard is fighting for the seal to be removed as soon as possible.

Madoff’s main account was held by JPMorgan Chase

If JPMorgan Chase had taken the initiative to review internal account records of the massive amounts of cash being moved, it could have easily seen that something was illegitimate, claims Sheehan. As suspicious activity was quickly discovered once the FTC began to investigate, supporters of Irving Picard believe that JPMorgan Chase was negligent in its duty to expose the fraud.

Sources

PR Newswire

Recent interview with Irving Picard re. SIPC Insurance

Previous Article

« Google creates algorithm to weed out bad online retailers

Google has created an algorithm that it says will ensure bad online retailers don't appear at the top of search engine results anymore... google algorithm
Next Article

You would be surprised at who needs guaranteed loans »

It is surprising who needs guaranteed loans at one point or another. Ford Motor Company got guaranteed loans to help it through the recession. Bank Check

Other recent posts by Steve Tarlow

Death Risk Rankings | Are You Dead Yet?

Want to know how you're most likely to die… and when? Check out Death Risk Rankings (DeathRiskRankings.com), answer some questions and you'll be…
Something about a reaping? (Photo: Eyehook.com)

Strap on your gris-gris, it’s Fat Tuesday

Fat Tuesday is the party of the year in New Orleans, and if you're there, your no fax cash advance source says have fun but be safe. Lent and bills are waiting.

Obama Tax Break Could Cost Millions Next Tax Day

Did you know that millions who benefitted from Making Work Pay will have to pay money back? Will these people need payday loans, I wonder?
Making Work Pay will cost millions of American taxpayers anywhere from $250 to $400 this coming tax season. These people may need payday loans. (Photo: flickr.com)