Madoff trustee sues JP Morgan Chase for $6.4 billion

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Irving H. Picard, the court-appointed trustee representing victims in the Bernard L. Madoff ponzi scheme, sued JPMorgan Chase on Thursday for $1 billion in fees and profits, and another $5.4 billion in damages.

The trustee accused the banking giant of profiting from the massive fraud in its role as Madoff’s primary banker. In a statement, Picard’s lawyers said that JPMorgan ignored “clear, documented suspicions” about the legitimacy of Madoff’s operation and should have detected illegal cash flows as part of its ponzi scheme. The lawyer said that Madoff would not have been able to successfully maintain the fraud without the bank’s help.

The trustee is working against a statute of limitations deadline to file lawsuits against parties that are potentially co-conspirators in the crime. In the last two weeks, Picard has filed lawsuits against Madoff associates and relatives, and Swiss banking firm UBS.

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