JPMorgan Doubted Madoff Well Before Arrest

But the bank kept working with Ponzi schemer
By Matt Cantor,  Newser User
Posted Dec 3, 2010 7:20 AM CST
In this March 10, 2009 file photo, Bernard Madoff exits Manhattan federal court in New York.   (AP Photo/Louis Lanzano, file)

(Newser) – JPMorgan Chase became suspicious of Bernie Madoff two months before his arrest, calling his investment returns “too good to be true”—yet the bank was still working with him when his Ponzi scheme came to light, according to documents obtained by ABC News. Now, lawyers for Madoff’s victims have slapped JPMorgan with a $6.4 billion lawsuit that asserts that the bank worked with Madoff even while it had documented concerns about him.

JPMorgan Chase’s London office filed a “Suspicious Activity Report” with a UK organized crime watchdog in October 2008. The report cited Madoff’s “lack of transparency” and “unwillingness to provide helpful information.” The bank had already begun pulling money from its Madoff-linked funds when it warned the UK government; the London branch didn’t send a comparable warning to the US.

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