J.P. Morgan Chase will pay $1.7 billion to victims of the Bernard Madoff Ponzi fraud scheme, according to deal announced by the Justice Department’s prosecutors, who agreed to delay criminal charges against the bank.
The financial institution is charged with violating the Bank Secrecy Act, and charges will be delayed for two years pending the payments and changes in the bank’s policies to stop prevent money laundering, which is how Madoff got away with his fraud until finally getting caught.
Madoff is serving a sentence of 150 years in prison for raking billions of dollars from investor’s accounts. One of those hardest hit was yeshiva University.
The Wall Street Journal reported Tuesday that the bank failed to send U.S. regulators a formal report on Madoff’s activities even though it had informed Britain in 2008 that Madoff’s returns on investments were “too good to be true.”
