Irving Picard, the well-compensated trustee in charge of wresting Madoff victims’ money from Madoff beneficiaries, is suing JPMorgan Chase.
Reuters reports that Picard, who’s been rapidly expanding his efforts to claw back investor dollars, is seeking $1 billion in fees and profits, plus $5.4 billion in damages from the banking behemoth. Here’s a slice of the cool old-school “wire report”:
Madoff trustee says complaint states JP Morgan ‘had clear, documented suspicions about the legitimacy of blmis’s [Ed: Bernard L. Madoff Investment Securities] operations’ * Madoff trustee – on the banking side the complaint charges, JPMC should have been more vigilant in seeing illegal cash flows * Madoff trustee- all recovered monies will be placed into customer fund and distributed, pro rata, to customers with valid claims
More as we get it.
Update: From the Associated Press, a little more color and a complete sentence:
Picard alleges the bank ignored the fraud and collected fees and profits, even though it had well-documented suspicions about the scam.
mtaylor [at] observer.com | @mbrookstaylor