More On Legal & Compliancefrom The Advisor's Professional Library
- Whistleblowers A whistleblower is any individual providing the SEC with original information related to a possible violation of federal securities law. The Dodd-Frank Act established a whistleblower program that enables the SEC to reward individuals who voluntarily provide such information.
- Use and Misuse of Social Media Social media is an inexpensive and effective way to communicate with established and prospective clients. Nevertheless, when RIAs utilize social media to promote their advisory practices, they risk compliance problems for their firms.
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.