Wednesday, 20 August 2014
Last updated 8 hours ago
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.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note