Madoff Victims Sue JPMorgan Chase

Sunday, April 26, 2009

Fallout from the Bernard Madoff scandal has spread to JPMorgan Chase, which is accused of being complicit in the scam, according to a lawsuit filed Thursday by a Florida partnership that lost almost $13 million last December in the Ponzi scheme. The suit suggests that bank officials knew there was trouble, as indicated by the fact that in late September JPMorgan Chase withdrew $250 million of its own money from one of Madoff’s largest feeder funds. Yet they failed to inform their outside investors that something was amiss. Three months later, Madoff’s scheme collapsed and 4,800 of his clients lost their investments. According to the lawsuit, if JPMorgan Chase had withdrawn their client’s money from Madoff at the same time that they did their own, the clients would have been saved from the debacle.

-David Wallechinsky
 
Suit Claims JPMorgan Aided Madoff’s Fraud (by Diana Henriques, New York Times)

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