Bernie Madoff Haunts JPMorgan from Behind Bars
Legal issues don’t just rain down on JPMorgan Chase & Co. (NYSE: JPM), they pour. The New York Times reports that federal authorities are looking at the bank’s involvement in the Bernie Madoff case. Speaking with people familiar with the matter, the publication says that ahead of a potential criminal investigation, Jamie Dimon and prosecutors have discussed a “deferred prosecution agreement” and that federal authorities have not ruled out a more severe sentencing.
The investigation would be to resolve whether or not JPMorgan disregarded evidence of the Madoff Ponzi scheme. The bank has been sued for similar reasons by Irving H. Picard. Picard filed the suit on behalf of Madoff’s victims.
Bernie Madoff is one of the most infamous white-collar criminals in modern history. Formerly a non-executive chairman of the NASDAQ exchange, Madoff is currently serving a 150-year sentence for operating the largest Ponzi scheme in history. In 2009, he pleaded guilty to 11 accounts felony financial fraud. All told, the amount missing from client accounts, including fabricated gains, was nearly $65 billion, with actual losses to investors of about $18 billion.