Posts Tagged ‘Bernie Madoff’

JPMorgan Chase to pay $1.7 billion for Bernie Madoff scandal

JPMorgan Chase

Newscast Media NEW YORK—Federal prosecutors and JPMorgan Chase have reached
a $1.7 billion settlement over the the bank’s role in the $65 billion Bernie Madoff
fraudulent Ponzi scheme. It is estimated that the actual amount of fraud may never
be known, due to the fact that many celebrities and politicians who were also
victims, are too embarrassed to come forward and admit they were duped.

The fine is the largest one ever imposed by federal regulators on an entity for
a violation of the Banking Secrecy Act. JPMorgan Chase was the lender in the Madoff
scheme, in which he defrauded investors out billions of dollars based on non-existent
investments and ghost trusts, into which his victims invested their money, that
Madoff spent on himself.

“We recognize we could have done a better job pulling together various pieces of
information and concerns about Madoff from different parts of the bank over time,”
wrote JPMorgan spokesman Joseph Evangelisti in an email to CNNMoney.

“We do not believe that any JPMorgan Chase employee knowingly assisted Madoff’s
Ponzi scheme,” he added.

The press release by prosecuting US Attorney Preet Bharara read as follows:

A press conference will be held today to announce criminal charges against
JPMorgan Chase Bank, N.A. for two felony violations of the Bank Secrecy Act in
connection with its relationship with Bernard L. Madoff Investment Securities, a
deferred prosecution agreement with the bank, and related civil actions. The
criminal charges against JPMorgan will be deferred for two years under an
agreement requiring JPMorgan, among other things, to admit to its conduct; pay
$1.7 billion to victims of Madoff’s fraud; and to reform its anti-money laundering
policies. The $1.7 billion payment by JPMorgan is the largest ever bank
forfeiture, and also the largest ever Department of Justice penalty for a Bank
Secrecy Act violation.

Currently, the 57-year-old Madoff, who really is the fall guy, is serving a 150 year
sentence for his crimes.

Be the first to comment - What do you think?  Posted by Joseph Earnest - January 7, 2014 at 6:06 pm

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SEC charges Madoff’s accountant for falsifying records and books


The Securities and Exchange Commission has charged the longtime accountant for many of Bernard Madoff’s oldest and wealthiest clients for his role in the creation of false books and records used in the massive Ponzi scheme.

The SEC alleges that Paul Konigsberg’s assistance resulted in the formation of
inaccurate trade confirmations each month as well as the development of phony data
and records documenting the fabricated trades that were, in turn, falsely reflected in
the ledgers and related books and records at Bernard L. Madoff Investment Securities


Be the first to comment - What do you think?  Posted by Joseph Earnest - September 27, 2013 at 8:41 pm

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