JPMorgan risk officer 'was warned on Madoff'

clock

A senior JPMorgan Chase risk officer was warned Bernard Madoff was suspected of running a Ponzi scheme nearly 18 months before the broker was charged with a $19.6bn fraud, according to a newly unsealed court filing.

The allegation is part of a $6.4bn lawsuit filed against the US bank by Irving Picard, the trustee charged with recovering money for Madoff's victims, the Financial Times reports. The lawsuit seeks to recover $1bn in fees and profits that JPMorgan took as the primary banker to Madoff's business and by structuring Madoff-related derivatives, plus $5.4bn in damages. The 114-page complaint unsealed on Thursday was originally filed secretly at JPMorgan's request. It was one of nearly 60 lawsuits the trustee filed late last year seeking more than $40bn from dozens of banks, hedge funds ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Offshore Investment

Aegon expands offshore bond offering to 'address adviser needs'

Aegon expands offshore bond offering to 'address adviser needs'

Adds Utmost Wealth Solutions Ireland through ARC

Jenna Brown
clock 27 February 2025 • 1 min read
FCA charges advice duo over 'reckless' high-risk pension investments

FCA charges advice duo over 'reckless' high-risk pension investments

Stephen Joseph Burdett and James Paul Goodchild have also been fined

Hope Coumbe
clock 24 May 2024 • 1 min read

New awards will celebrate excellence in Channel Islands financial services

Entries now open - deadline for submissions 8 June 2016

Professional Adviser
clock 17 March 2016 • 1 min read