Inquiring minds are smiling tonight at the idea of JPMorrgan Chase & Co. having to pay off the victims of Bernie Madoff:
The trustee seeking money for defrauded former clients of Bernard Madoff said he filed a $6.4 billion lawsuit accusing JPMorgan Chase & Co of aiding the imprisoned Ponzi schemer’s fraud as his main banker.
The lawsuit is the second largest that trustee Irving Picard has filed against former Madoff clients or others he believes assisted in the estimated $65 billion Ponzi scheme.
JPMorgan, the No. 2 U.S. bank, was for more than 20 years the main banker for Bernard L. Madoff Investment Securities LLC, which the trustee is liquidating following its December 11, 2008 collapse. Picard must file “clawback” lawsuits to recover money lost in the fraud by the two-year anniversary of the Madoff firm’s demise.
“JPMorgan was willfully blind to the fraud, even after learning about numerous red flags surrounding Madoff,” said David Sheehan, a lawyer representing the trustee.
“While many financial institutions enabled Madoff’s fraud, JPMorgan was at the very center of that fraud, and thoroughly complicit in it,” Sheehan said.
Let’s hope that justice prevails and JPMorgan Chase & Co. is forced to pay back the investors.
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