NEW YORK — Officials say JPMorgan Chase & Co. will pay $1.7 billion to settle criminal charges and a $350 million civil penalty for missing obvious warning signs of Bernard Madoff’s massive Ponzi scheme.
The criminal settlement and the separate Treasury Department penalty were announced today.
Federal prosecutors in New York say the $1.7 billion represents the largest forfeiture ever by a U.S. bank.
The Treasury Department’s Office of the Comptroller of the Currency says its penalty was imposed because JPMorgan had “critical and widespread deficiencies” in its programs to prevent money laundering and other suspicious activity.
The bank says it doesn’t believe employees knowingly assisted Madoff’s Ponzi scheme. It also says it has taken steps to do better in the future.
Guidelines: Please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. Comments that violate these standards, or our privacy statement or visitor's agreement, are subject to being removed and commenters are subject to being banned. To post comments, you must be a registered user on toledoblade.com. To find out more, please visit the FAQ.