{"id":1370,"date":"2014-01-07T16:15:46","date_gmt":"2014-01-07T16:15:46","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2014\/01\/jpmorgan_to_pay_26b_in_penalti"},"modified":"2022-03-11T08:55:09","modified_gmt":"2022-03-11T14:55:09","slug":"jpmorgan-to-pay-26b-in-penalti","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/jpmorgan-to-pay-26b-in-penalti\/","title":{"rendered":"JPMorgan To Pay $2.6B in Penalties in Bernard Madoff Ponzi Scam Settlements"},"content":{"rendered":"

\t\t\t\tJPMorgan Chase & Co. (JPM)<\/a> will pay around $2.6 billion in penalties to settle criminal and civil allegations accusing the bank of failing to warn that Bernard L. Madoff was engaged in a multibillion-dollar Ponzi scam. $2.24 billion will go toward compensating the scheme’s victims-$1.7 billion will be forfeited via the US Department of Justice and $543 million will go to the bankruptcy trustee who is collecting funds for plaintiffs and other Madoff victims. $350 million will settle U.S. Office of the Comptroller of the Currency (OCC) claims. <\/p>\n

The penalties are just the latest in the numerous securities settlements that JPMorgan has agreed to pay. The bank recently resolved cases over mortgage bond sales and the “London Whale” trading debacle, among other matters. This latest deal over the Madoff scam would up the total that the firm has paid to resolve government probes to $20 billion in the last year. <\/p>\n

Federal prosecutors and the FBI had been trying to determine whether JPMorgan failed to notify regulators about Madoff’s activities even though there were a number of red flags. For example, why did the bank not formally raise worries about Madoff here when it submitted such a complaint in the UK? (The former financial manager kept primary checking accounts at JPMorgan for years.) This, even though US law mandates that banks turn in a SAR (suspicious activity report) when they detect that their might be suspected or definite activities violating federal law. <\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

JPMorgan Chase & Co. (JPM) will pay around $2.6 billion in penalties to settle criminal and civil allegations accusing the bank of failing to warn that Bernard L. Madoff was engaged in a multibillion-dollar Ponzi scam. $2.24 billion will go toward compensating the scheme’s victims-$1.7 billion will be forfeited via the US Department of Justice […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3752,3797],"tags":[],"class_list":["post-1370","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-j-p-morgan-chase"],"yoast_head":"\nJPMorgan To Pay $2.6B in Penalties in Bernard Madoff Ponzi Scam Settlements — Investor Lawyers Blog — January 7, 2014<\/title>\n<meta name=\"description\" content=\"JPMorgan Chase & Co. 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