Suit Says JP Morgan Was at the Center of Madoff Scheme
US News • February 2011 • Views: 1,418
J.P. Morgan Chase & Co. ignored or dismissed warning signs about the Madoff fraud even as it earned hundreds of millions of dollars from its relationship with his firm, according to a lawsuit unsealed Thursday.
The $6.4 billion lawsuit, filed by the bankruptcy trustee representing victims, claims that bankers at J.P. Morgan discussed the possibility that Bernard Madoff was operating a Ponzi scheme, worried that a firm of such size was audited by a storefront accountant and called his returns “too good to be true.”