Business World

Wednesday 13 December 2017

JP Morgan pays $1.7bn over Madoff

Disgraced financier Bernie Madoff
Disgraced financier Bernie Madoff

JP Morgan Chase & Co will pay a $1.7bn (€1.25bn) penalty to settle charges by US federal authorities that the bank failed to report suspicious activity relating to Bernard Madoff's Ponzi scheme.

The bank had violated laws in the Madoff case, requiring that it monitor customer activity for money laundering, authorities have said.

The deal includes a two-year deferred-prosecution agreement and settles outstanding probes by two bank regulators into failures in JP Morgan's anti-money laundering policies. The bank also agreed to improve its controls.

As part of the deal, the bank agreed not to apply for a tax deduction or tax credit for the $1.7 bn payment. The funds will go to the victims of Madoff's fraud.

LAUNDERING

JP Morgan is admitting that it had failed to raise the alarm about Madoff's activities to a bank regulator, even though bankers in more than one area of its operations had identified inconsistencies in his behaviour and his fund's returns.

Madoff, through his hedge fund operation, Bernard L. Madoff Investment Securities LLC, was revealed in 2008 to be the operator of a massive Ponzi scheme. Convicted in 2009 of defrauding thousands of investors, he is serving a 150-year prison sentence. (Reuters)

Irish Independent

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