Picard said Tuesday in a statement that the JPMorgan agreement resolves his claims the bank facilitated Madoff’s fraud for years by ignoring signs of fraud.
The settlement of the three-year-old lawsuit was made possible by the trustee’s team 'uncovering and documenting the facts about JPMorgan’s relationship with Madoff,' Picard said in the statement.
Madoff’s JPMorgan account was used to perpetuate the fraud, according to Picard. Madoff deposited money from new customers into the account instead of investing it in securities, and made withdrawals to pay back earlier investors. Picard alleged JPMorgan ignored signs of wrongdoing to benefit financially from the con man’s business.
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