Prosecutors examining JPMorgan's actions in Madoff fraud case-NYT

March 26 Tue Mar 26, 2013 11:32pm EDT

March 26 (Reuters) - U.S. prosecutors are examining whether JPMorgan Chase & Co fully alerted authorities to suspicions about fraudster Bernard Madoff, the New York Times reported, citing several people with direct knowledge of the matter.

The prosecutors suspect JPMorgan may have violated a federal law that requires banks to alert authorities to suspicious transactions, the newspaper reported.

"We believe that the personnel who dealt with the Madoff issue acted in good faith in seeking to comply with all anti-money laundering and regulatory obligations," JPMorgan spokesman Joe Evangelisti told the newspaper. ()

Evangelisti declined to comment on the New York Times report to Reuters.

The Madoff fraud was revealed in 2008, when the financier ran out of money to meet redemption requests from his customers. He is serving a 150-year prison sentence.

The trustee appointed to liquidate Madoff's firm has said JPMorgan, Madoff's main bank for two decades, and other banks ignored numerous warning signs about the firm's business, allegations the banks have denied.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

A tourist takes a plunge as she swims at Ngapali Beach, a popular tourist site, in the Thandwe township of the Rakhine state, October 6, 2013. Picture taken October 6, 2013. REUTERS/Soe Zeya Tun (MYANMAR - Tags: SOCIETY) - RTR3FOI0

Where do you want to go?

We look at when to take trips, budget considerations and the popularity of multigenerational family travel.   Video