Madoff on track to receive $200m loan from JPMorgan before arrest

Bernie Madoff

A former JPMorgan Chase banker who managed Bernard Madoff’s account said the con man was on track to receive a $200m loan less than a month before his arrest if the request hadn’t been dropped.

Bloomberg reports that Daniel Bonventre, one of five ex-Madoff employees on trial for allegedly aiding the fraud, asked JPMorgan in November 2008 to borrow twice Madoff’s credit limit of $100m, with U.S. Treasuries as collateral, Mark Doctoroff, who left the bank last year, testified yesterday in federal court in Manhattan.

'They are doing well financially', Doctoroff said of Madoff’s securities firm in an e-mail to JPMorgan’s credit department on 17th November, 2008. 'They are looking at the current market as an opportunity to make investments, true to their value investing style'.

The five former employees are accused of helping Madoff hide his fraud from customers, banks and regulators for years, and getting rich in the process. It’s the first criminal trial stemming from the scheme, which prosecutors say started in the early 1970s and imploded at the peak of the financial crisis.

The loan was part of a last-ditch attempt by Madoff to secure cash as his Ponzi scheme was collapsing and Bonventre's role in the application process was one of the many examples of his involvement in the fraud, prosecutors have said.

To access the complete Bloomberg article hit the link below:

JPMorgan Banker Backed $200 Million Madoff Loan in 2008

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image: © U.S. Department of Justice

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