JPMorgan settles Madoff fraud claims for $1.7 billion
Tue, 07 Jan 2014 16:10:39 GMT —
JPMorgan Chase has agreed to pay $1.7 billion to settle claims related to Bernard Madoff's massive Ponzi scheme.
The settlement with federal authorities was announced Tuesday.
JPMorgan was Madoff's primary bank in the later years of a fraud that spanned decades. The scheme ended in 2008 when Madoff revealed to the FBI that his investment advisory business was a multibillion-dollar Ponzi scheme.
The settlement includes a so-called deferred prosecution agreement that requires the bank to acknowledge failures in its protections against money laundering but also allows it to avoid criminal charges. No individual executives were accused of wrongdoing.
Madoff's scheme impacted Central New Yorkers, including members of the Roofers Local 195 union, that lost 90 percent of its pension fund in the scam. The Plumbers & Steamfitters union in Oswego and the Empire State Carpenters Fringe Benefit Funds also lost money.
The 75-year-old Madoff pleaded guilty and is serving a 150-year prison term.
(Information from the AP was used in this report.)