JPMorgan Agrees To Pay $US1.7 Billion To Bernie Madoff Victims

Jamie dimon justiceREUTERS/Gary CameronJ.P. Morgan CEO Jamie Dimon (front) leaves the U.S. Justice Department after meeting with Attorney General Eric Holder, in Washington, September 26, 2013.

JPMorgan Chase has agreed to pay $US1.7 billion to victims of Bernie Madoff’s ponzi scheme, according to a statement from the United States Attorney for the Southern District of New York. [via Bloomberg News]

U.S. Attorny Preet Bharara will hold a press conference today at 1:15 p.m. EST.

Bharara will announce two felony violations of the Bank Secrecy Act against JPMorgan. Those criminal charges will be deferred for two years.

Here’s the press release:

A press conference will be held today to announce criminal charges against JPMorgan Chase Bank, N.A. for two felony violations of the Bank Secrecy Act in connection with its relationship with Bernard L. Madoff Investment Securities, a deferred prosecution agreement with the bank, and related civil actions. The criminal charges against JPMorgan will be deferred for two years under an agreement requiring JPMorgan, among other things, to admit to its conduct; pay $US1.7 billion to victims of Madoff’s fraud; and to reform its anti-money laundering policies. The $US1.7 billion payment by JPMorgan is the largest ever bank forfeiture, and also the largest ever Department of Justice penalty for a Bank Secrecy Act violation.

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