Madoff Trustee Seeks $19 Billion From JPMorgan


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Madoff trustee seeks $19 billion from JPMorgan (Reuters, June 24, 2011):

* Trustee Irving Picard triples lawsuit to $19 billion

* JPMorgan, Madoff’s main bank, calls lawsuit meritless (Adds details from lawsuit, JPMorgan comment, background, dateline, bylines)

NEW YORK, June 24 (Reuters) – The trustee seeking money for Bernard Madoff’s victims is now seeking $19 billion from JPMorgan Chase & Co (JPM.N), tripling the amount he hopes to recover from what was once the imprisoned Ponzi schemer’s main bank.

The amended complaint was filed by the trustee Irving Picard just three days after the second-largest U.S. bank agreed to pay $153.6 million to settle U.S. Securities and Exchange Commission fraud charges.

Picard previously sought to recover $6.4 billion from JPMorgan, including $1 billion representing fraudulent transfers and claims, and $5.4 billion of damages.

“JPMorgan Chase’s bankers literally watched the fraud unfold before their very eyes,” Deborah Renner, a lawyer representing Picard, said in a statement.

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