More On Legal & Compliancefrom The Advisor's Professional Library
- Preventing and Dealing with Client Complaints Although the SEC has not provided specific guidance on how client complaints should be handled, a firms policies and procedures should provide clear direction how to do so, as neglecting complaints can exacerbate a bad situation.
- Advertising Advisor Services and Credentials Section 206 of the Investment Advisers Act contains the anti-fraud provision of the statute and ensures that RIAs advertising and marketing practices are consistent with the fiduciary duty owed to clients and prospective clients.
In the continuing saga of investment con man Bernie Madoff and his victims Ron Stein, President of the Network for Investor Action and Protection, a not-for-profit foundation founded by former investors of Bernard L. Madoff Investment Securities LLC.,weighed in on the Madoff Trustee’s lawsuit against JPMorgan Chase.
“This action is appropriate and overdue,” Stein said in a statement Thursday. “The Trustee has drawn a clear line between the facilitators of the fraud and innocent victims of the fraud, and we believe his efforts to recover funds should be focused on the guilty parties. Innocent investors who had no knowledge of the fraud should be left alone.”
Irving Picard, the trustee seeking money for defrauded clients of Madoff, said he filed a $6.4 billion lawsuit accusing JPMorgan Chase of aiding Madoff’s fraud as his main banker.
Reuters notes the lawsuit is the second largest that Picard has filed against former Madoffclients or others he believes assisted in the estimated $65 billion Ponzi scheme.
JPMorgan, the No. 2 U.S. bank, was for more than 20 years the main banker for Bernard L. Madoff Investment Securities LLC, which the trustee is liquidating following its Dec.11, 2008 collapse. Picard must file "clawback" lawsuits to recover money lost in the fraud by the two-year anniversary of the Madoff firm's demise, according to the news service.