Skip to comments.Bernie Madoff bank J.P. Morgan Chase accused in $6.4B lawsuit of ignoring his ponzi scheme
Posted on 02/05/2011 11:37:55 AM PST by SeekAndFind
The overseer trying to recover funds for Bernie Madoff's victims slapped J.P. Morgan Chase with a $6.4 billion suit Thursday, claiming the bank turned a blind eye to the mega-fraudster's swindling.
Trustee Irving Picard says officials at J.P. Morgan, Madoff's longtime banker, should have spotted red flags alerting them to the Ponzi scheme.
"Just as in the children's fable, they knew the 'Emperor had no clothes,' but looked the other way, allowing the fraud to continue," Picard's lawyer, Deborah Renner, said Thursday.
The bank "admitted in the months before Madoff's arrest that ... returns were too good - especially in down markets - to be believable, but for years they pretended that was not the case."
The suit, which is still sealed, seeks nearly $1 billion in fees and profits and another $5.4 billion in damages for "willfully blind to the fraud," according to another Picard lawyer, David Sheehan.
Picard earlier this month sued giant Swiss bank UBS for $2 billion for sending clients to Madoff, as well as suing more than 40 former employees that worked for the uber-swindler, including his wife and other relatives.
Madoff, 72, is serving a 150-year sentence in federal prison in North Carolina after admitting ripping off thousands of investors.
The estimated $20 billion Ponzi scheme came to light in the December 2008 after Madoff came clean to federal investigators.
(Excerpt) Read more at nydailynews.com ...
I would ask several questions:
1. Did Madoff really pay $1 billion in fees for his checking account? I would think he could have got a better deal than that, no matter how many wire transfers he made.
2. Were the investment bankers, who decided that Madoff’s fund was not advisable for purchase, have knowledge that Madoff also had his checking account at JPM? After all, they didn’t work in the transaction processing department, or even in the same city.
Irving Picard FOR SEC CHAIR!!!!
So this jerk-off decides to file a frivolous law suit and now JPM-Chase will be forced to spend millions in defense costs, or to pay ransom to get this ass-wipe off their back.
Even Picard doesn’t want this case to go to court, ‘cause then he would have to spend defense money out of the money he’s already extorted from others.
No sympathy here.
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Every one of Madoff’s investors should have know that it was a ponzi scheme based solely on the inflated profits that they received or were promised. There is no reason to pay them off now.
Looking at the vast majority of investors, I wouldn’t argue with anyone if they labeled this Holocaust II.
Jamie Damond Obama’s favorite Banker.
The price must be paid by the likes of JP Morgan, I want friggin PERP walks now!!!!
Yeah, I don't know what's up wit dat.
But Jamie Dimon remains the most intelligent banker; the most focused CEO; the most demanding boss; and the most ethical manager, on the face of this planet.
Dimon was spurned by the management of CitiCorp, said screw that, and went on to heading JPM-Chase: built it in to the premier bank in the world. If Dimon ever thought that Madoff had a nefarious account with his bank, he would have shut it down immediately.
But, JPM-Chase will pay big bucks to the A-Hole Picard, only because Picard is looking for extortion; thus maximizing his trustee fees!
Disgusting that we have to live in a country where A-holes can force the adversary to spend mega millions in defense of a garbage law suit!