Convicted Ponzi schemer Bernie Madoff pointed a fraudulent finger at Jamie Dimon’s JPMorgan Chase, saying the big bank “doesn’t have a chance in hell” of successfully battling a $6.4 billion lawsuit accusing the bank of aiding and abetting the massive, decades-long scam.
“I am not a banker, but I know that $100 billion going in and out of a bank account is something that should alert you to something,” Madoff told the Financial Times in his latest prison interview, where he is serving a 150 year sentence in federal lockdown.
“There were senior people at the bank who knew what was going on,” Madoff told the London paper in an interview, falling short when it came to naming names.
JPMorgan told the FT that “Madoff’s assertion that JPMorgan employees ‘knew what was going on’ is patently false.”
“JPMorgan complied fully with all applicable laws and regulations governing customer accounts,” the bank said.
In December, Irving Picard, who’s been tasked with cleaning up Madoff’s multi-billion mess, hit JPMorgan with a $6.4 billion suit, accusing the bank of “willfully turning a blind eye” to the scheme. Picard said JPMorgan was Madoff’s “primary banker for over two decades,” touching “virtually every cent that flowed through the Ponzi scheme.”
“JPMorgan doesn’t have a chance in hell of not coming up with a big settlement,” Madoff told the FT about Picard’s allegations.
Madoff also predicted “big problems” for two other banks being sued by Picard — HSBC, which is being sued for $9 billion, and UBS, where Picard is seeking $2 billion for alleged ill-gotten gains.
It’s not the first time the Ponzi king has pointed his finger at the banks and others who profited from his scheme. Earlier this year he told a second newspaper, without naming any particular companies, that the banks “had to know” of his fraud.