Former customers of Ponzi scheme kingpin Bernie Maddoff has filed a class action lawsuit against JPMorgan Chase & Co. hoping to recover $19 billion. The Maddoff victims claimed that the bank concealed and willfully ignored signs of fraud.
The lawsuit reads:
“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.”
Last week, U.S. District Court Judge Colleen McMahon threw out a similar lawsuit from Irving Picard, the trustee seeking money in behalf of the Madoff victims. The bank then argued that Picard failed to prove that anyone at the bank has knowledge of Madoff’s scheme or has worked directly with him to earn fees. According the the ruling, Picard does not have standing to seek money from the bank and stressing that only victims can pursue claims.
It has been a long battle for the victims. Do you think there is even a chance for them to recover all their investments?