February 4, 2011
Dear Colleagues:
I have begun to read the newly unsealed complaint filed by the Trustee against JP Morgan Chase. When finished, I may or may not write about it -- I haven't yet decided. But I do think that all of you should be given an opportunity to read the complaint's (fairly dramatic) introduction, especially since the media seems to have missed (as usual) some significant aspects of it. I have therefore appended the first five pages of the complaint.
Larry Velvel
Irving H. Picard ("Trustee"), as trustee for the substantively consolidated liquidation of
the business of Bernard L. Madoff Investment Securities LLC ("BLMIS") under the Securities Investor Protection Act, 15 U.S.C. - - 78aaa, et seq . ("SIPA"), and the estate of Bernard L. Madoff, by and through his undersigned counsel, as and for his Complaint against JPMorgan Chase & Co., JPMorgan Chase Bank, N.A., J.P. Morgan Securities LLC, and J.P. Morgan Securities Ltd. (collectively, "JPMC" or "Defendants"), states as follows:
NATURE OF THE ACTION
""But the Emperor has nothing on at all!!!' said a little child."
Hans Christian Andersen, The Emperor's New Clothes
"For whatever it[']s worth, I am sitting at lunch with [JPMC
Employee 1] who just told me that there is a well-known cloud over the
head of Madoff and that his returns are speculated to be part of a [P]onzi
scheme."
[JPMC Employee 2], Risk Officer, Investment
Bank, JPMC, June 15, 2007
1. The story has been told time and time again how Madoff duped the best and the
