Trustee in Madoff case recovers more than $10bn

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The trustee unwinding Bernard Madoff’s fraud has recovered more than $10bn for victims five years after the biggest Ponzi scheme collapsed, including $543m Tuesday from Madoff’s bank, JPMorgan.

Bloomberg reports that Irving Picard, the trustee, has recovered 59% of the $17bn in principal lost by thousands of investors in Madoff’s investment advisory business.

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.

To access the complete Bloomberg article hit the link below:

Madoff Trustee Tops $10 Billion Recovery With Bank Deal

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images: © U.S. Department of Justice, © Tax Credits

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