JPMorgan Knew Of Madoff Fraud, Trustee Says

Law360, New York (February 3, 2011, 6:58 PM EST) -- JPMorgan Chase & Co. suspected for several years that Bernard L. Madoff was running a massive Ponzi scheme but said nothing in order to protect its investments, the trustee liquidating Madoff's investment company alleged in a lawsuit unsealed Thursday.

The trustee, Irving H. Picard, is seeking $6.4 billion from JPMorgan — about $1 billion in fees and $5.4 billion in damages, according to a complaint filed in the U.S. Bankruptcy Court for the Southern District of New York.

According to the complaint, JPMorgan had access to...
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