JP Morgan Chase Charged With Massive Fraud: Madoff Trustee Sues 6.4 Bil

The charges: The Ponzi scheme Madoff pulled off was only possible with the complicit actions of his main bank, JP Morgan Chase.

And seriously, it does not take a Federal Agency to figure this out. The SEC has known this all along.
JP Morgan Chase turned a blind eye, financially benefitting from the loss of others.

Now this will be extremely interesting to watch.

Dec. 2, 2010 /PRNewswire/ -- Irving H. Picard, the Trustee for the liquidation for Bernard L. Madoff Investment Securities LLC

"JP Morgan was willfully blind to the fraud, even after learning about numerous red flags surrounding Madoff," said David J. Sheehan, counsel for the Trustee and a partner at Baker & Hostetler LLP, the court-appointed counsel for the Trustee. "While many financial institutions enabled Madoff's fraud, JPMC was at the very center of that fraud, and thoroughly complicit in it. JPMC was BLMIS's primary banker for more than 20 years, and was responsible for knowing the business of its customers – in this case, a very large customer. Madoff would not have been able to commit this massive Ponzi scheme without this bank. JPMC should pay the price for its central role in enabling Madoff's fraud."

Dec. 2, 2010 /PRNewswire/ -- Irving H. Picard, the Trustee for the liquidation for Bernard L. Madoff Investment Securities LLC ("BLMIS") today announced the filing of a complaint in the United States Bankruptcy Court for the Southern District of New York against JPMorgan Chase & Co., JPMorgan Chase Bank, N.A., J.P. Morgan Securities LLC and J.P. Morgan Securities Ltd. (collectively "JPMC").

The complaint seeks to recover nearly $1 billion in fees and profits and an additional $5.4 billion in damages for JPMC's decades-long role as BLMIS's primary banker, aiding and abetting Madoff's fraud. All recovered monies will be placed into the Customer Fund and distributed, pro rata, to Madoff customers with valid claims, the rightful owners of those monies.

While JPMC may want to hide the full extent of its significant role in the Madoff fraud from the public, we intend to move to have the complaint made public as soon as possible," said Mr. Picard.

www.prnewswire.com... r-with-enabling-massive-fraud-111203234.html

UPDATE

Documents obtained by ABC News show that two months before Bernie Madoff's arrest JP Morgan Chase suspected that his investment returns were probably "too good to be true." The bank, however, was still doing business with Madoff when federal authorities discovered his Ponzi scheme.

abcnews.go.com...

The lawsuite can be read here:
online.wsj.com...

reply to post by burntheships


good find!!

it would be nice to see the bankers who made millions, if not billions off of this scheme, get what's coming to them..............

but, I'm afraid, if, there is any action, it will only be against some lowly peon...................

and so it goes.................

S&F

corruption within the banking system?? NEVER?! does this latest scandal really come as a suprise? for those with thier eyes wide open this is nothing but the norm, the expected almost, for those with their eyes wide shut, well maybe this will wake them up seeing as it is going to be made public....wether the msm report it is another issue.

hang them all by their balls!

6.3 billion?
that's like a drop in the bucket to the 100's of billions they are making ripping off the public.

And nothing compared to the trillions they will make when the economy finally collapses and they come in like saviors to help loan money to rebuild the new economy.

It's nice to see the banksters secrets starting to be unravelled. I have a feeling this might just be the start - one thing will lead to another and another...

Great find. Thanks for the thread.

I am interested to see how this ends up. I have severely lowered expectations, honestly, unless it can gain some steam after the new year when Wikileaks shifts focus to the banking industry and corporatocracy (where they should have focused to begin with, honestly).

Good find, and well explained, OP.

reply to post by burntheships


i thought i read somewhere that the SEC itself was turning a blind eye to the Madoff scheme...
and they were aware of the Ponzi enterprise for more than a handful of years.

i would guess that it was 'hands off' both Madoff and JPM for different reasons... but the same higher up
authority made that policy (fed/ treas?)
i'll see if i can pull up yesterdays sites i visited (more than a dozen in the financial area) and cite the
SEC negilegence in correcting the rogue behavior by these 2 entities ...

reply to post by bigfatfurrytexan

I am interested to see how this ends up. I have severely lowered expectations, honestly, unless it can gain some steam after the new year when Wikileaks shifts focus to the banking industry and corporatocracy (where they should have focused to begin with, honestly).

I really wish wikileaks HAD leaked the bank info first. He will probably end up dead within the year. That is what usually happens if you go against the Banskers.

I very much doubt we will ever see the promised material. TPTB will find some way to censor or destroy it.

Great find. If this sort of stuff continues to show up maybe the Sheeple will finally wake up.

was responsible for knowing the business of its customers

Pardon my naivety, but since when is a bank responsible for knowing the business of its customers? That's not their business.
It's bad enough that the gooberment forces banks to report every transaction over $10,000.

It's just another lawyer looking for a big payday.

reply to post by wookiee


Actually he is not a lawyer per se. He is the trustee of the Madoff Bankruptcy.
He is looking to pull money from the suit to pay the ones who were cheated in
the Madoff Ponzi scheme.

reply to post by burntheships


All that's going to happen is everybody going to plead the 5'th on the grounds it will incriminate me or everybody involved in the case will come down with a sudden case of Amnesia or will just plead stupidity.

THIS IS THE BEST SUNDAY NEWS YET! I'm on it baby!

Goodjob!