Tag Archives: Madoff

JPMorgan Chase wins dismissal of Madoff investors’ U.S. lawsuit


JPMorgan Chase & Co on Wednesday won the dismissal of a lawsuit by former investors of Bernard Madoff’s firm who blamed the largest U.S. bank for turning a blind eye to his Ponzi scheme.

U.S. District Judge John Koeltl in Manhattan said the plaintiffs failed to show that JPMorgan had specific control over Madoff’s fraudulent activities. He also said the allegations suggested at most that JPMorgan’s conduct was negligent, not fraudulent.

Read on.

Life After Madoff: Ruth Living on $2.5 Million in Connecticut


Instead of a sprawling Manhattan penthouse she lives in a rented one bedroom, 989 square foot apartment in Connecticut.

There are no more limousines, just a Toyota Prius.

And the $2.5 million she was allowed by the government to keep is a pittance compared to the billions of dollars her husband once had in his bank account.

Yet Ruth Madoff is not complaining, at least publicly.

Since the suicide of her son Mark, and the cancer death of her other son Andrew, she has largely disappeared from the public eye.

TUNE IN Wednesday and Thursday this week for the ABC miniseries “Madoff” followed Thursday by an hour-long ABC News special on the real-life Madoff story. To get caught up, check out ABC News’ in-depth coverage of the Madoff scandal by clicking HERE.

She lives near her grandchildren, is an avid consumer of books from the local library and is a familiar figure in her small town running errands at the dry cleaners and the grocery store.

Madoff’s fellow inmates say Ruth stopped going to North Carolina to visit Bernie in prison after the suicide of her son.

But they remain in contact.

“Ruth is still the person to go through to contact Bernie in prison,” said one friend. She has told others she still hears from her imprisoned husband “now and then” and never went through with her threatened plans to seek a divorce.

Read on.


JPMorgan’s Dimon, others defeat Madoff fraud appeal

JPMorgan Chase & Co shareholders cannot pursue a lawsuit to force Chief Executive Jamie Dimon and other officials to pay damages to the largest U.S. bank for their alleged ignorance of red flags signaling Bernard Madoff’s Ponzi scheme, a federal appeals court ruled on Wednesday.

The 2nd U.S. Circuit Court of Appeals in Manhattan upheld a lower court dismissal of claims that Dimon and 12 other executives and directors breached their duties by turning a blind eye to Madoff, an important client for two decades, to maintain the bank’s lucrative relationship with him.

Citing applicable Delaware law, the appeals court said the shareholders did not show that the defendants “utterly failed to implement any reporting or information system or controls” that might have caught Madoff’s fraud.

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Check Out JPMadoff.com — The True Horror Series Starring Fraud Street and You!


Forget House of Cards, Game of Thrones, Madmen, and all the other series you can’t wait to restart. There’s a new series out that beats them all. It went live yesterday on this channel. It’s free for the viewing, well, actually for the reading. It’s as shocking and scary as anything you’ll see in The Walking Dead.

No, there no pretend zombies eating your mother-in-law. Instead, there are real-life, crooked felons eating your lunch. They star, in Season 1, the JPMorgan Chase bankers who spent two decades laundering Bernie Madoff’s money without a single one going to jail or, it seems, even losing his job. Season 2 may feature other JPMorgan bankers (all of whom are not just walking the streets, but still managing people’s money) whose financial malfeasance has produced over $28 billion in JP Morgan fines over the past four years. Seasons 3 and beyond? No one knows. But Citigroup, Bank of America, Morgan Stanley, and Goldman Sachs and their bankers will, no doubt, play leading roles.

The authors of this new page-turner — JPMadoff: The Unholy Alliance between America’s Biggest Bank and America’s Biggest Crook – are Helen Davis Chaitman and Lance Gotthoffer. Chaitman is one of the top lawyers in the country. She represents a large number of Madoff victims and knows the Madoff fraud inside and out – in part because she’s spent the last five years interviewing Madoff himself. Gotthoffer is one of our nation’s top litigators.

The book is serialized because the miscarriage of justice by Wall Street, better known as Fraud Street, is ongoing. How we react to this ongoing victimization will determine how the series ends.

And here is the JPMadoff.com website:

In the past four years alone, JPMorgan Chase has paid out $28,902,150,000 in fines and settlements for fraudulent and illegal practices. You could be next. – See more. Click here.


Big Banks Don’t Owe Madoff Estate $30B, Court Rules

Big Banks Don’t Owe Madoff Estate $30B, Court Rules

Banks including JPMorgan Chase and HSBC can’t be sued by the Bernard Madoff firm’s liquidator for $30 billion because he is tainted by the con man’s fraud, an appeals court ruled.

Madoff trustee Irving Picard appealed rulings barring him from demanding damages from banks that allegedly ignored Madoff’s fraud for the sake of fees. Federal district judges Colleen McMahon and Jed Rakoff, both in Manhattan, had said Picard can’t accuse the banks of fraud because he’s the trustee for a fraudulent enterprise, citing a legal principal called in pari delicto.


U.S. Regulator To Fault JPMorgan Chase Over Bernie Madoff Dealings: Report

U.S. Regulator To Fault JPMorgan Chase Over Bernie Madoff Dealings: Report

April 15 (Reuters) – U.S. regulators plan to fault JPMorgan Chase & Co, which served as Bernie Madoff’s main bank for two decades, for failing to conduct adequate due diligence and report suspicious activity, according to a person familiar with the matter.

The Office of the Comptroller of the Currency is expected to issue a cease-and-desist order against JPMorgan, which will require the largest U.S. bank to put an end to the alleged failures in its anti-money laundering practices.

The timing of the order is uncertain but could come later this year, the source said. A fine is not expected. If the OCC is not satisfied with JPMorgan’s response, it can take harsher action against the bank, including financial penalties.

OCC spokesman Bryan Hubbard declined comment, as did JPMorgan spokeswoman Jennifer Zuccarelli.


Madoff is sticking it to the banks. Madoff to FOX Business: ‘The banks knew’

Madoff is sticking it to the banks. Madoff to FOX Business: ‘The banks knew’

Jailed Ponzi schemer Bernard Madoff plans to amplify his contention, possibly in testimony before Congress, that the big banks he did business with – J.P. Morgan Chase (JPM), Bank of New York Mellon (BK THE BANK OF NEW YORK MELLON CORP.), Citigroup (C CITIGROUP INC.) and HSBC Group (HBC), among others – knew what he was up to.

 The banks have repeatedly and vehemently denied this contention.

But in an e-mail to FOX Business reporter Adam Shapiro received Tuesday, Madoff said he plans to offer specific information to Congressional committees investigating both his crimes and possible complicity on the part of Madoff’s banking partners.

Madoff said he has offered Irving Picard, the court-appointed bankruptcy trustee who has pored over Madoff’s finances since the scheme collapsed in late 2008, information that would prove his assertion, but the trustee has so far ignored Madoff’s efforts.

Madoff wrote to Shapiro: “From my first interview to the media I have said that ‘the banks must have known’, and were complicit and contributing to my crime. Although I have offered the bankruptcy TRUSTEE (sic) the information that I possessed that would demonstrate in detail their complicit behavior of banks like JP Morgan, Bank of N.Y., HSBC, Citicorp and others. The Trustee seems unwilling to act on my offer. Therefor (sic) I am offering this information to the appropriate governmental committees in the hope that this information will prove helpful in future regulation of the appropriate institutions.”

Read more: http://www.foxbusiness.com/business-leaders/2013/03/26/madoff-in-e-mail-to-fox-business-banks-knew/#ixzz2P5UVS2lQ