Madoff Victims Sue JPMorgan

Nov 8 2011 | 10:20am ET

Just a week after a federal judge tossed the Bernard Madoff receiver's lawsuit against JPMorgan Chase, a pair of Madoff investors has taken her reasoning to heart.

The investors, Stephen and Leyla Hill, filed a $19 billion lawsuit against the bank, accusing it, as did trustee Irving Picard before them, of ignoring red flags that pointed to Madoff's $65 billion Ponzi scheme.

"JPMC chose to enable Madoff's fraud, not just through the various ways it participated in his activity, but by helping cover Madoff's naked theft with the imprimatur of a globally-recognized financial institution," the lawsuit, which seeks class-action status, alleges. The Hills call JPMorgan "thoroughly complicit" in Madoff's fraud and alleged that it could have been uncovered by the simplest of examinations of Madoff's operation.

The Hill lawsuit seeks the same amount as the Picard lawsuit junked last week. In her ruling, U.S. District Judge Colleen McMahon said that Picard did not have standing to sue third parties on behalf of Madoff victims. Picard's lawsuits against UBS, HSBC Holding and UniCredit, totaling more than $10 billion, fell under the same reasoning.

Picard has appealed those rulings.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

FATCA for Hedge Funds: Eight Common Pitfalls

Sep 1 2015 | 10:56am ET

FATCA is now a way of life for those in the financial industry and most professionals...

 

Editor's Note