Skip to content
Subscriber Only

Madoff Trustee Defends $19 Billion Suit Against JPMorgan

The liquidator of Bernard Madoff’s firm defended a $19 billion lawsuit against JPMorgan Chase & Co., saying he was empowered by law to sue the bank on behalf of innocent creditors of the Ponzi scheme operator.

The second-biggest U.S. bank asked a judge last month to dismiss trustee Irving Picard’s suit, citing U.S. District Judge Jed Rakoff’s July ruling that he can’t sue on behalf of Madoff customers, using common-law claims against parties who failed to detect the fraud. Picard, who appealed the ruling, said bankruptcy law gives him the powers necessary to bring his suit.