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For over a decade, Madoff ran his Ponzi scheme out of a bank account at JPMorgan. Instead of making trades with the money he received from investors, Madoff simply deposited the funds in an account at the bank, from which he paid dividends.
The bank account in which Madoff held investors funds nearly hit zero several times in 2008, a fact that JPMorgan could not have failed to notice, considering that the account had previously held billions.
In December of 2010, Irving H. Picard, the trustee for the investors who were defrauded by Madoff, filed a lawsuit against JPMorgan Chase, alleging that the bank knew that Madoffs transactions were fraudulent but continued doing business with him.
he trustees lawsuit alleges that JPMorgan made $1 billion in fees and profits from its role as Madoffs main banker. The trustee is seeking to recover $5.4 billion in damages.
When the trustees suit was filed, attorney David J. Sheehan noted that JPMorgan was BLMIS [Bernard L. Madoff Investment Securities] primary banker for more than 20 years and was responsible for knowing the business of its customersin this case, a very large customer.
He added, Madoff would not have been able to commit this massive Ponzi scheme without this bank. [JPMorgan] should pay the price for its central role in enabling Madoffs fraud.
sourceFor over a decade, Madoff ran his Ponzi scheme out of a bank account at JPMorgan. Instead of making trades with the money he received from investors, Madoff simply deposited the funds in an account at the bank, from which he paid dividends.
The bank account in which Madoff held investors’ funds nearly hit zero several times in 2008, a fact that JPMorgan could not have failed to notice, considering that the account had previously held billions.
In December of 2010, Irving H. Picard, the trustee for the investors who were defrauded by Madoff, filed a lawsuit against JPMorgan Chase, alleging that the bank knew that Madoff’s transactions were fraudulent but continued doing business with him.
he trustee’s lawsuit alleges that JPMorgan made $1 billion in fees and profits from its role as Madoff’s main banker. The trustee is seeking to recover $5.4 billion in damages.
When the trustee’s suit was filed, attorney David J. Sheehan noted that JPMorgan “was BLMIS’ [Bernard L. Madoff Investment Securities’] primary banker for more than 20 years and was responsible for knowing the business of its customers—in this case, a very large customer.”
He added, “Madoff would not have been able to commit this massive Ponzi scheme without this bank. [JPMorgan] should pay the price for its central role in enabling Madoff’s fraud.”
The suggestion that Madoff was so brilliant that he could swindle his clients is credible.
The suggestion that Madoff could have used his funds like a personal checking account, never buying stocks, simply putting money in and taking it out occassionally and that his BANKERS would NOT have noticed that?
THAT is NOT credible, folks.
Theoretically, what sort of "price" might JP Morgan pay (civil/criminal) if, in fact, the bank aided and abetted Bernie's scheme to steal from other rich people?
Across the board, criminals are not the sharpest knives in the drawer, Mike. This one was more elusive than most.Considering all the money Madoff had command of, and the fact he was subject to exposure and arrest at any time, it is surprising to me that at some point he didn't make an effort to construct an avenue of expedient dlisappearance. He could easily have worn theatrical makeup to establish an alternate identity, then purchase and maintain a secure residence or two, along with a hidden car or two, open inconspicious bank accounts and stuff safe deposit boxes with billions of dollars in cash, gold, and gems. He could even have gotten a phony passport, secretly traveled to Argentina, bought a little villa to abscond to and live in luxury like the escaped Nazis (no extradition treaty). All it takes to do any of that is cash -- which Bernie had plenty of.
At the first hint of investigation Bernie could have donned his disguise and vanished. With the kind of money he controlled there is no limit to the elaborate escape preparations he could casually and quietly have arranged. But he did nothing. When the covers came off he was a sitting duck.
I wonder if he thinks about this while lying on his prison bed at night --because he could be lying on a beach cot at the French Riviera.
Considering all the money Madoff had command of, and the fact he was subject to exposure and arrest at any time, it is surprising to me that at some point he didn't make an effort to construct an avenue of expedient dlisappearance. He could easily have worn theatrical makeup to establish an alternate identity, then purchase and maintain a secure residence or two, along with a hidden car or two, open inconspicious bank accounts and stuff safe deposit boxes with billions of dollars in cash, gold, and gems. He could even have gotten a phony passport, secretly traveled to Argentina, bought a little villa to abscond to and live in luxury like the escaped Nazis (no extradition treaty). All it takes to do any of that is cash -- which Bernie had plenty of.
At the first hint of investigation Bernie could have donned his disguise and vanished. With the kind of money he controlled there is no limit to the elaborate escape preparations he could casually and quietly have arranged. But he did nothing. When the covers came off he was a sitting duck.
I wonder if he thinks about this while lying on his prison bed at night --because he could be lying on a beach cot at the French Riviera.
How about Elizabeth Warren, Bernie Sanders, and Ralph Nader (for Attorney General)?
