A New York City judge has rejected a $19 billion claim a trustee recovering money for Wall Street swindler Bernard Madoff’s investors demanded from JPMorgan Chase, a bank used by the disgraced financier.
Federal Judge Colleen McMahon says trustee Irving Picard doesn’t have standing to pursue that amount of damages from the bank.
Picard claimed in court papers the bank knew about Madoff’s multi-decade fraud, which cost thousands of people billions of dollars. A spokeswoman says Picard will appeal and notes Tuesday’s ruling didn’t determine the merit of allegations of wrongdoing by JPMorgan Chase & Co.
A JPMorgan spokeswoman says the bank is pleased with the ruling dismissing the trustee’s common law claims.
Madoff pleaded guilty to fraud charges and is serving a 150-year prison sentence in Butner, N.C.