Victims of Bernie Madoff have filed a $19 billion class action lawsuit against JPMorgan & Chase claiming that the bank ignored various signs of fraud.
Filed in federal court in Manhattan the lawsuit asserts that even a basic cursory examination of Bernard L. Madoff Investment Securities LLC would have revealed improper money flow issues that did not rely on any type of investment strategy.
According to the lawsuit:
“JPMC chose to enable Madoff’s fraud, not just through the various ways it participated in his activity, but by helping to cover Madoff’s naked theft with the imprimatur of a globally recognized financial institution.”
This newest lawsuit filed against JPMorgan & Chase comes just one week after a $19 billion claim was dismissed by a federal judge, that case was filed by the trustee liquidating Madoff’s former firm. Last weeks case was dismissed by U.S. District Judge Colleen McMahon who said trustee Irving Picard didn’t have the legally appropriate power to demand common-law damages on behalf of defrauded investors.
Picard has filed more than 1,000 lawsuits against former Madoff clients since the firm collapsed in December 2008. Most lawsuits filed against the trustee are known as “clawback” lawsuits which were filed after Madoff customers withdrew too much money from the firm just before it collapsed.
Do you think JPMorgan & Chase should be sued for overlooking such a massive financial fraud?