The Associated Press February 3, 2011, 3:49PM ET

Madoff trustee: JP Morgan execs warned of fraud

The trustee trying to recover money for investors cheated by Bernard Madoff says executives at JP Morgan Chase were told about concerns that he was running a massive fraud but ignored the warnings.

Irving Picard filed a $6.4 billion lawsuit against the company in December. It was unsealed Thursday.

The 114-page complaint contains quotes from internal emails to support its claim that JP Morgan should have known Madoff was running a scheme.

The suit alleges that the company had heard concerns for years over Madoff's activities, but didn't report it to any government officials until October 2008. Madoff was arrested at the end of that year.

Madoff is serving a 150-year sentence in a federal prison after admitting that he ran his scheme for at least two decades.


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