The most hated man in America, Bernie Madoff, has started talking. And it looks like victims’ lawyers are using the new information to go after the financial firms that invested in the disgraced financier.
One could be JPMorgan. As the New York Post reports, Jamie Dimon’s shop is a likely target for a lawsuit from Joseph Cotchett, the San Francisco trial lawyer who recently interviewed Madoff in prison.
According to the Post’s sources, Cotchett could go after JPM — and other big banks — because it lacked due diligence by investing its clients’ money with Madoff. The bank has also been accused of protecting itself, with respect to Madoff, while leaving its clients exposed.
This comes after another victims’ lawsuit in April that accuses JPMorgan of aiding Madoff by maintaining his checking accounts and trading with his brokerage firm after knowing the operation was a fraud in September 2008.
As we’ve speculated, it may have been JPMorgan’s decision to withdraw money from Madoff feeders that ultimately led to the chain of events that brought down The Ponz.
As the famous Watergate question goes: “What did the banks know, and when did they know it?”
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