Bernard L. Madoff, serves 150-years prison term for creation of the largest
financial pyramid in history. However now it is found out, he was not alone in that business. Madoff hints about that accomplices were the largest financial institutions with Wall-street.
«Many financial institutions promoted swindle Madoff, however JPMorgan Chase were in the center of this swindle and actually participated in it». So it is spoken in the statement of claim submitted to the New York court by Irving Pickard, Temporarily Managing Director of firm Bernard L. Madoff Investment Securities (BLMIS) which is appointed for the refund to former clients of Bernard Madoff. The managing director demands from JPMorgan, one of pillars Wall-street with actives approximately in 2 billion dollars, indemnification of losses the victim at a rate of 6,4 billion. Independent experts go further away. In their opinion, all modern financial world - one greater pyramid.
Pickard and its command of lawyers, seems did good job, preparing for the claim. About a quarter of the 115-page document is allocated to the description of concrete examples of how employees JPMorgan Chase signaled upward that Madoff’s investments remind a financial pyramid. However any checks and investigations on these signals were not initiated. The hint is more than transparent: one of Wall-street giants, turns out, had a share in the business.
Especially the accounts for 2006 when Madoff’s activity on its main, so-called 703-rd account in JPMorgan has got feverish but deprived though any business-logic character abounds with "red tags». In some days through it passed billions dollars. And often huge sums were transacted somewhere that almost immediately or through one-two day to return to within cent back. Millions of dollars were withdrawn in cash under the checks which have been repeatedly issued on same person. Divergences between current balance on the account and payment obligations were unbelievable.
The list of financial strangenesses is long, detailed and sad. Almost each of these episodes, demanded, according to the legislation, inquiries to the client, and even in law enforcement bodies. «It is amazing, - lawyers consider, - you in a literal sense see millions and millions dollars entering both leaving daily, and no single phone call simply to take an interest in legitimacy of operations».
By the way, inside JPMorgan such assumptions were not a secret at all, as correspondence between employees testifies. In an exchange of electronic letters bankers exclaimed surprise, that annual audit of multi-billion investment company Madoff was trusted to tiny auditor from Long Island, consisting of two person. «Listen, - writes to one another, - it would be necessary to go and look at auditors, at least to be convinced, that to this address there will be no car wash or something in this sort».
Only in the autumn of 2008, JPMorgan Chase has directed the complaint of the British police, having repeated now a sacramental phrase that long-term steady Madoff’s profits «are too good to be the truth, and those are not». Following step became that by the end of year JPMorgan Chase on the sly has withdrawn the investments from Bernard L. Madoff company.
How to explain persistent blindness of respectable bank? Elementary, answers a question Irving Pickard. JPMorgan Chase for blindness, deafness and silence has received not less than billion dollars in the form of percent and commission fee from Madoff. The sum rather big even for such giant though now, being justified, they declare, that «firm Madoff was not important or significant client».
The question on how the primitive financial pyramid has existed two decades, is set for a long time. However just now it is possible to try to find the answer. Apparently, a classical pyramid structure Madoff became on a decline of its business history. Before that money of investors were invested in risky assets, but quite legally. And with it the financier was helped actively by the largest Wall-street corporations. To pay billion to JPMorgan Bernard L. Madoff should receive profit, otherwise money for payments to all clients of its company would run out much earlier. Crash has coincided on time with world financial crisis when large players began to withdraw money from investment funds including the one under control of Madoff. And Bernard continued to please clients with steady incomes. And probably, exclusively due to payments of new «the deceived investors».
The most cynical, that investment banks had enough time to withdraw the funds from Madoff’s pyramid, and moreover, with good profit. And here, there were deceived almost entirely physical persons.
Now it is necessary to find out, why one and a half century of prison were sentenced exclusively Madoff, and his potential buddies from Wall-street enjoy freedom and milliards USD grants of the government of the USA which have helped financiers to survive the crisis.
Question you can answer it - how to create the largest financial pyramid in history. Press below the button and write …