Madoff trustee Irving Picard has picked his biggest target yet in a series of “clawback” lawsuits: JPMorgan.
Picard is seeking $6.5 billion from the JPMorgan for “enabling” fraud, according to CNBC. The trustee says JPMorgan should have recognised its client’s fraudulent activity.
There have been accusations of JPMorgan’s complicity with Madoff floating around for years — primarily because Madoff worked very closely with Bear Stearns before it was acquired by JPMorgan.
UPDATE: JPMorgan has just released a statement saying the lawsuit distorts information, according to CNBC.
Picard filed 100 lawsuits just yesterday as part of a flurry of lawsuits filed before the mid-December deadline. He had recovered around $1.5 billion by Sept. 30 and sought to recover $18.5 billion, according to Dealbook. The largest lawsuit filed yesterday was against Blue Star Investors for $20 billion.
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