JPMorgan to dish out more than $2B for Madoff fraud

JPMorgan to dish out more than $2B for Madoff fraud

JPMorgan to dish out more than $2B for Madoff fraud

As part of the agreement, JPMorgan will pay $1.7 billion to the Department of Justice and $350 million to the U.S. Office of the Comptroller of the Currency. The deal also includes a two-year deferred prosecution agreement and settles other probes by bank regulators for failing to adhere to anti-money laundering policies. Additionally, JPMorgan cannot apply for a tax deduction or tax credit on the $1.7 billion fine, which will be distributed amongst Madoff's victims.

JPMorgan – which faces at least eight other government investigations – agreed to pay $13 billion over its mortgage bonds back in November. By midday Tuesday, the bank’s shares were down 1.4 per cent to $58.19.

Madoff’s money laundering plot, operated through his firm Bernard L. Madoff Investment Securities LLC, was uncovered in December 2008 and is now known as the largest Ponzi scheme in history.

Madoff, 75, was convicted in 2009 and is currently serving a 150-year prison sentence.

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