JP Morgan Chase is being asked to pay $2.5 billion after allegations surfaced that the company ignored warning signs of Bernard Madoff’s Ponzi scheme. Madoff was accused of conducting his scheme through accounts at this bank.
The $2.5 billion is broken up as follows: $1.7 billion to settle criminal charges, $543 million to settle civil claims, and $350 million in civil penalties. The $1.7 billion to settle criminal charges is the largest bank forfeiture for a Bank Secrecy Act violation.
JP Morgan maintains that none of its employees actively or intentionally facilitated the scam, but the bank did admit that it could have done a better job putting the pieces together and detecting those red flags.
