Madoff Trustee Appeals $19B JPMorgan Ruling
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The liquidator of Bernard L. Madoff’s firm, who lost the right to demand $19 billion in damages from JPMorgan Chase & Co. (JPM), appealed the ruling to a higher court.
JPMorgan last month won the dismissal of trustee Irving Picard’s damage claims in his lawsuit alleging the biggest U.S. bank aided Madoff’s fraud. Picard can’t sue for common-law damages on behalf of the defunct Madoff firm’s customers, U.S. District Judge Colleen McMahon ruled in New York.
The judge told Picard he could go ahead and appeal her ruling after getting JPMorgan’s consent to do so, according to court papers. Picard agreed to put his remaining claims against New York-based JPMorgan on hold while he appeals.
Rulings by district judges McMahon and Jed Rakoff have knocked more than $28 billion off of Picard’s claims against banks and may cost him as much as $11 billion in recoveries from other cases aimed at benefiting investors who lost money in the Ponzi scheme, according to the trustee’s estimates.
JPMorgan said it didn’t know about the fraud and couldn’t be held responsible for a scheme orchestrated by Madoff alone.
Madoff pleaded guilty and is serving a 150-year prison term. Picard and his firm have made about $224 million in fees since Madoff’s 2008 arrest.
The McMahon cases are Picard v. JPMorgan Chase & Co., 11- cv-913; Picard v. UBS Fund Services (Luxembourg) SA, 11-cv-4212, U.S. District Court, Southern District of New York (Manhattan).
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