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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.
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.
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).
was responsible for knowing the business of its customers