Posted on 01/03/2011 11:50:25 AM PST by FromLori
A court-appointed receiver trying to recover funds for victims of Tom Petters' Ponzi scheme has sued JPMorgan Chase & Co. for more than $300 million, alleging the bank should have known that money it seized from Petters was the result of fraud.
The Minnesota businessman was convicted last year of perpetrating a $3.7 billion Ponzi scheme that counted hedge funds, pastors, missionaries and retirees among its victims. Prosecutors said the one-time owner of Polaroid Holding Co. and Sun Country Airlines orchestrated the plot, but Petters has blamed his associates and is appealing his 50-year prison sentence. JPMorgan, its affiliates and some individuals seized more than $300 million in assets from Petters in the wake of his arrest.
In a new claim filed Wednesday in federal court in Minnesota, receiver Doug Kelley demanded that JPMorgan return $25 million it seized from Petters' accounts just days after the 2008 FBI raid that led to his arrest.
"This was JPMorgan trying to step ahead of the Ponzi scheme's victims and creditors to the tune of $20 million bucks," Kelley said Thursday.
Mary Jane Rogers, a spokeswoman for JPMorgan, declined to comment on the charges.
Kelley has also been seeking to recover about $285 million in fees and proceeds that JPMorgan received on Petters' purchase of Polaroid. JPMorgan had been the majority owner of Polaroid, so it earned profit as the seller, financer and financial adviser in the transaction, the lawsuit said. Kelley claims that while the defendants were conducting due diligence before the purchase, they ignored signs of trouble so they could profit on the deal.
(Excerpt) Read more at abcnews.go.com ...
Boy oh boy obama’s friend’s at JPM sure seem to fall in with some real douche bags..
Madoff trustee sues JPMorgan for $6.4 billion
http://www.reuters.com/article/idUSTRE6B153220101202
JPMorgan CEO Jamie Dimon Donates Serious Cash to Democrats
http://www.opensecrets.org/news/2009/07/jpmorgan-ceo-jamie-dimon-donat.html
We now need a judge to rule on legality of the world’s biggest ponzi scheme, the misnamed Social Security Trust program.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.