Bernard Madoff, Allen Stanford fraud victims refused appeals by US top court

Victims of the Ponzi schemes of Bernard Madoff and Allen  Stanford, two of the largest in US history, suffered setbacks on  Monday as the US Supreme Court refused to hear appeals in  two cases seeking to recoup more money for them

Victims of the Ponzi schemes of Bernard Madoff and Allen Stanford, two of the largest in US history, suffered setbacks on Monday as the US Supreme Court refused to hear appeals in two cases seeking to recoup more money for them

 

Victims of the Ponzi schemes of Bernard Madoff and Allen Stanford, two of the largest in US history, suffered setbacks on Monday as the USSupreme Court refused to hear appeals in two cases seeking to recoup more money for them.

 

In the Madoff case, the court rejected a request by Irving Picard, the trustee liquidating Bernard L. Madoff Investment Securities LLC, to review the dismissal of his claims against banks he accused of enabling Madoff’s fraud.

 

Separately, the court rejected a request by Ralph Janvey, a receiver unwinding Stanford’s businesses, to review a ruling that blocked him from pursuing claims against Stanford employees on behalf of the receivership’s creditors, not the businesses themselves. In both cases, lower courts concluded that Picard and Janvey lacked standing to bring their respective claims.

The Supreme Court did not give reasons for its decisions, which leave intact a June 2013 ruling in the Madoff case by the federal appeals court in New York, and an August 2013 ruling in the Stanford case by the federal appeals court in New Orleans.

Representatives for Picard and Janvey were not immediately available to comment. Picard has recovered about $9.82 billion for former Madoff customers, who he has estimated lost $17.5 billion of principal in a decades-long fraud uncovered in December 2008. A Ponzi scheme is one in which the early investors are usually paid high returns using money from later investors.

Picard had sued banks including JPMorgan Chase & Co, Britain’s HSBC Holdings Plc, Italy’s UniCredit SpA and Switzerland’s UBS AG over their dealings with Madoff. JPMorgan, which was Madoff’s main bank, was dropped from the case after reaching a $325 million settlement with Picard in January, part of a $2.6 billion global resolution of federal and private Madoff claims.

Stanford’s estimated $7.2 billion fraud was based on the sale of bogus certificates of deposit issued by Antigua-based Stanford International Bank to customers who thought the CDs were safe. The Ponzi scheme was uncovered in February 2009.

Janvey won court approval for an initial $55 million distribution to CD investors in April 2013. Madoff, 76, is serving a 150-year prison term after pleading guilty in March 2009. Stanford, 64, is serving a 110-year term following his jury conviction in March 2012. The cases are Picard v JPMorgan Chase & Co et al, USSupreme Court, No. 13-448; and Janvey v Alguire et al, USSupreme Court, No. 13-913.

 

To join the debate click here.

For a full and open debate on the Stanford receivership visit the Stanford International Victims Group – SIVG official Forum http://sivg.org.ag/

 

 

Advertisements

JPMorgan to pay victims of Madoff fraud

US federal authorities say JPMorgan Chase, the primary bank used by the jailed investor Bernard Madoff to run dubious pyramid schemes, has agreed to play $1.7 billion to settle victims’ claims.

jpmorgan

The US attorney of the southern district of New York said Tuesday that the bank JPMorgan Chase would pay $1.7 billion to settle charges that it violated laws requiring banks to monitor customer activity for money laundering.

The deal includes a two-year deferment of prosecution against the bank. No individual executives were accused of wrongdoing.

Madoff, 75, who is currently serving a 150-year prison term, was arrested in 2008 as his hedge fund business fell apart amid the global financial crisis.

He was convicted in 2009 of defrauding investors.

Using so-called Ponzi schemes, Madoff relied on new cash intakes to pay clients cashing out. Hundreds of clients – ranging from celebrities to ordinary savers – lost their holdings.

The federal prosecutions statement said under the deal JPMorgan Chase would pay the fine to victims of Madoff’s fraud, admit to its conduct, and had agreed to upgrade operations to prevent money laundering.

The bank had agreed not to apply for a tax deduction or tax credit for the $1.7 billion payment.

In exchange, criminal charges would be deferred for two years.

JPMorgan did not immediately comment on the settlement. It shares fell 55 cents to $58.45 in morning trading Tuesday.

Join the Debate: http://sivg.org.ag/topic254.html

For a full and open debate on the Stanford Receivership visit the Stanford International Victims Group – SIVG official forum http://sivg.org.ag/