Former customers and victims of Bernie Maddoff, who ran the biggest ponzi scheme ever known to man, 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.
“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 on behalf of the Madoff victims.
The bank then argued that Picard failed to prove that anyone at the bank had knowledge of Madoff’s scheme. According the ruling, Picard does not have legal standing to seek money from the bank and then stressed that only victims of Madoff themselves can pursue claims.
Do you think that Madoff’s victims have a case? $19 Billion dollars is an awful lot of money.