11.09.11

JP Morgan Sued by Madoff Victims

Posted in Fraud at 2:31 pm by kevin

Former customers turned victims of Ponzi scheme engineer Bernie Madoff are suing financial institution JP Morgan Chase and Company for $19 billion. The claimants are stating that JP Morgan turned a blind eye to the massive fraud scheme.

According to Reuters, “JPMorgan was Madoff’s bank for two decades. The lawsuit, filed in federal court in Manhattan, claims the bank was ‘thoroughly complicit’ in concealing Madoff’s fraud … The class action lawsuit asserts that even a cursory examination of the finances of Bernard L. Madoff Investment Securities LLC would have revealed that the money was not used to follow an investment strategy but simply flowed between Madoff and his customers.”

JP Morgan Chase meanwhile deny responsibility simply stating that no one at the financial firm knew what Madoff was up to and therefore could not reasonably take action against the fraudster.