JPM PONZI Participation was Intentional

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EDITOR’S NOTE: And for all those who are still hanging onto the idea that the big Wall Street banks could be negligent but not intentional in confusing and defrauding investors, here is the Madoff Trustee saying otherwise.

It’s interesting that people who were depending upon JPM found they were dealing with Madoff. Borrowers who thought they were dealing with the commercial bankers found out they were dealing with Wall Street.

If a Borrower said he wanted to borrow money but he didn’t want to sign for it, the bank would decline the loan for obvious reasons. If the Borrower said OK I’ll sign for it through a bankruptcy-remote vehicle, the banks would not only decline, they would refer it to law enforcement for bank fraud.

So just how different is it when Wall Street brings loans to the table but doesn’t want to admit it was them? How different is it when they do deals with bankruptcy remote vehicles? Why is it OK for them to dodge the responsibility for making the loan, when if the borrower did the same thing they would be accused of bank fraud.

Bank fraud can work 2 ways — fraud against banks and fraud by banks. Either way they should go to jail and never be allowed to keep the fruits of their schemes.

Madoff Trustee Seeking Billions More From JPMorgan

By BLOOMBERG NEWS

Irving H. Picard, the trustee liquidating Bernard L. Madoff’s firm, said on Friday that he had filed a revised lawsuit against JPMorgan Chase & Company, demanding a minimum of $19 billion in damages.

Mr. Picard had sought $5.4 billion in damages previously in addition to $1 billion in transfers and claims.

JPMorgan “was an active enabler of the Madoff Ponzi scheme,” David Sheehan, Mr. Picard’s lawyer, said in a statement. JPMorgan officials “not only should have known that a fraud was being perpetrated, they did know,” he said.

Mr. Picard, who has filed 1,000 lawsuits, claiming $90 billion for Madoff investors, first sued JPMorgan in bankruptcy court in December, contending it ignored signs of fraud as billions of dollars flowed from Mr. Madoff’s account at the bank to investors. JPMorgan was Mr. Madoff’s primary banker.

The lawsuit sought $1 billion in fees and transfers, and $5.4 billion in damages, contending that JPMorgan defrauded federal regulators and violated banking law.

The amended complaint makes additional allegations, including that two former employees of an unidentified financial institution observed “nearly daily circular transactions” between an account that Mr. Madoff controlled at their employer and his account at JPMorgan.

After raising questions about the transactions, the financial institution closed the account because it saw no legitimate business purpose for the transactions, according to the complaint.

The amended complaint also includes a request for a jury trial.

A JPMorgan spokesman, Joseph Evangelisti, has said the bank complied fully with all laws and regulations.

JPMorgan has sought dismissal of the case, arguing that Mr. Picard was hired to liquidate the Madoff firm and has no legal right to mount a class action and claim damages for the Ponzi scheme’s investors.

7 Responses

  1. I thought the Madoff Ponzi scheme was a miniature example of the big Ponzi scheme. JPM needs to pay big time just like BofA had to. Put them ot of business and take their assets.

  2. RepoWatch.org:

    “The 2008 financial crisis was not caused by homeowners who borrowed too much money. It was caused by big banks that borrowed too much money, especially on the repurchase market.”

    But the banks got bailed out, and the homeowners got lied to and raped.

  3. Jaime Dimon quote:

    “Our company, J.P. Morgan Chase, employs more than 220,000 people, serves well over 100 million customers, lends hundreds of millions of dollars each day and has operations in nearly 100 countries. And if some unforeseen circumstance should put this firm at risk of collapse, I believe we should be allowed to fail.”

    Please do.

  4. The Chief Judges of Every State have the responsibility of seeing that all the lower court judges follow the law of the land and that would mean “no fraudulent rulings” but here in New York our Chief Judge Jonathan Lippman is afraid to take on the Judges knowing what bullies they are.

    New York state like any other state deserves honest judges, how do we send them out to pasture?

  5. As soon as the special interest groups are eliminated, along with their lobbyist and the congressmen, that pave the way for acceptance of such funds, not to mention, reining in the OCC and other regulatory that report directly to the Congress.

    In otherwords Debi, the people themselves are going to have to make the difference by setting the rules, for example the people should not vote for anyone who will obey special interest groups and their lobbyist attack dogs. It is real simple, but the people are going to have to educate themselves regarding the very people they put in office. And quite frankly, they never do it to the extent they should. Won’t stop until we have a more scrutinize society.

    For local Judges – that too is simple. The people put on the forum and grill those running for judgeship down to a nub. They can either base their decisions on the rule of law and for the people, are they will see the forum of the people, standing up and turning their backs on them at a sign of complete disapproval for the office. Have we forgotten that slogan – I am not going to take it any more or stand up and scream if you don’t like what is going on. I think well meaning and fair minded people turning the backs on the individual candidate will scare off those candidates that do not appear to be up to the job. No hostility need be display – just a badge of concern for this country by standing up for their rights.

    You know, just like they did in Van Dame’s movie, in Blood Sport. They must earn their right to serve the people and they must do it in an honorable way. Right now, those in charge literally make me sick and I have no intentions of voting for any of them in this state again.

  6. It seems to me that if jPM is allowed to keep the ponzi scheme money, they were definitely aiding and abetting. When is this fraudulent era ever going to b able to end? Where Florida is now trying to become non judical to steal even more homes? Who in their right mind can’t see what is happening? It seems that since all the information is OUT there. The assignment, the liars loans, the false securitizations and PSA breaches. Seems like its a fricking free for all right? Don’t they understand this behavior will lead to only further lawlessness. Why would anyone follow any laws ever again? Is this really what america is turning into? Another era eye for an eye? That seems just about right for all of this fraud and felonious behavior. When are any of these fukers going to jail?? That’s all I want to know — if not then why not satisfactions of mortgages compliments of linda green for everyone?! Deb. 5613899339

  7. […] Source: Livinglies’s Weblog […]

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