The Bernie Madoff scandal is far from over, writes PR Newswire. It has been announced via press release that Irving Picard, the trustee for liquidation of Madoff Investment Securities LLC (BLMIS), is filing a grievance in U.S. Bankruptcy Court for the Southern District of New York against several arms of Chase, including banks and securities companies. Picard’s circumstance asks for $6.4 billion for the victims of the Bernie Madoff Ponzi scheme. Based on Trustee council allegations, Chase bank is accountable of aiding and abetting Bernie Madoff in cheating consumers out of many billions of dollars. Article source – Trustee Irving Picard sues JPMorgan Chase for Madoff fraud by Money Blog Newz.
Case states Chase bank was middle of Ponzi scheme
David Sheehan, court-appointed counsel for Picard, said that “JP Morgan was willfully blind to the scams, even after learning about numerous red flags encircling Madoff." Bernie Madoff's investing scheme involved a lot of different financial institutions. Sheehan explains that JP Morgan Chase was probably 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 Chase. The business said it "simply continued to collect fees and derive profit." Sheehan says that Chase was the only reason the Madoff Ponzi plan worked. It wouldn't have otherwise.
The Bankruptcy Court is where all the financial data with the complaint are filed right now. This is because JPMorgan Chase has designated all of the data confidential. 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 cash being moved, it could have effortlessly seen that something was illegitimate, says Sheehan. As suspicious activity was quickly discovered once the FTC started to investigate, supporters of Picard believe that Chase bank was negligent in its duty to expose the scams.
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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