One of the biggest banking and investment corporations in the U.S. is now in the cross hairs of the Bernie Madoff scandal. In a press release, Trustee Picard, who’s responsible for the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), declared that Chase and companies is the subject of a massive grievance to be heard by the United States Bankruptcy Court for the Southern District of NY. Picard seeks to recuperate $1 billion in fees and profits, plus $5.4 billion in damages for Madoff clients, from JPMorgan Chase, previously BLMIS’ primary lender. The allegation is that JPMorgan Chase aided and abetted Bernie Madoff and company in the largest known Ponzi plan in United States history.
Ponzi scheme presumably throughout Chase
David Shehan said, “JP Morgan was willfully blind to the scams, even after learning about numerous red flags encircling Madoff." He is the court-appointed counsel for Picard. Bernie Madoff's investing plan involved a lot of different financial institutions. Sheehan explains that Chase was the most involved financial institute though even after seeing all the warning signs over 20 years that things were going wrong. Of course the evidence isn't enough for JP Morgan Chase. The company said it "simply continued to collect fees and derive profit." The Madoff Ponzi plan wouldn't have been able to happen with Chase, claims Sheehan.
The Bankruptcy Court is where all the financial data with the grievance are filed right now. JP Morgan Chase identified the info as confidential. This is the reason. Picard is fighting for the seal to be removed as soon as possible.
Main account for Madoff at JP Morgan Chase
If JPMorgan Chase had taken the initiative to review internal account records of the massive amounts of money being moved, it could have easily seen that something was illegitimate, states Sheehan. There was a quick amount of suspicious activity discovered by the Federal Trade Commission one the investigation started. Chase should have exposed the scams much faster according to those who support Irving Picard.
Citations
PR Newswire
prnewswire.com/news-releases/trustee-for-liquidation-of-bernard-l-madoff-investment-securities-charges-jpmorgan-chase-madoffs-primary-banker-with-enabling-massive-fraud-111203234.html
Recent interview with Irving Picard re. SIPC Insurance
youtube.com/watch?v=KP6tH4HVzEY
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