JPMorgan Deal Gives Madoff Trustee More Than $10B To Return

Jan 8 2014 | 10:45am ET

Yesterday's settlement with JPMorgan Chase has pushed the amount recovered from the Bernard Madoff Ponzi scheme by its court-appointed receiver above $10 billion.

Irving Picard will collect $543 million of the roughly $2.7 billion JPMorgan agreed to pay to settle allegations that it failed to notify authorities about concerns about Madoff's operations. Picard had been seeking $1 billion from the bank, which served as Madoff's primary bank for decades.

"This compromise with JPMorgan allows us to sidestep those pitfalls with recovering additional, significant monies," Picard's top lawyer, David Sheehan, said.

The recovery, which will be made available to victims following a judge's approval, means that Picard has recovered more than $10 billion of the roughly $17.5 billion investors lost when Madoff's fraud collapsed five years ago. Investors also have access to a $2.35 billion fund not overseen by Picard.

Picard is still seeking about $3.5 billion from three other banks. Much of the other proceeds from yesterday's deal with federal prosecutors and regulators is also expected to wind up in the hands of Madoff victims.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR