JP Morgan Not Liable For Losses of Customers Victimized in Madoff Ponzi Scheme
A federal appeals court in Manhattan ruled that some 2,500 investors could not recover money from the investment giant JP Morgan for claims related to the massive ponzi scheme run by notorious fraudster Bernie Madoff.
The court said that the investors, who were called “net winners” because they withdrew more money from their accounts with Madoff than they invested, did not prove that JP Morgan had enough control over Madoff’s behavior to justify a suit. The appeals court upheld a previous ruling handed down by a district court.
Madoff is in the midst of a 150-year prison sentence for orchestrating the largest ponzi scheme in American history. JP Morgan, which once counted Madoff as a major client, reached a $2.6 billion settlement with the federal government in 2014 in other Madoff-related litigation. The investors’ attorney said his clients were considering their legal options.
The Madoff case was, of course, one of the most extraordinary instances of investment fraud in the nation’s history. Hundreds of people lost their livelihoods as the result of Madoff’s schemes, and the losses hit some of the wealthiest and most famous individuals and entities in New York City. Litigation related to Madoff’s ponzi scheme is likely to continue for years.
If you’ve been the victim of investment fraud, you need our experienced lawyers. Please call Colling Gilbert Wright today at 1-407-712-7300 for a free consultation.