Andrew Madoff, Bernard Madoff’s last surviving son, was under investigation for possible involvement in his father’s multibillion-dollar Ponzi scheme until the day he died from cancer earlier this month.
Andrew Madoff had long maintained that he and his brother, Mark, who hanged himself in 2010, knew nothing of the massive fraud.
Andrew Madoff was under investigation for possible involvement in his father’s Ponzi scheme until the day he died (photo The New York Times)
However, two federal law enforcement officials said investigators never believed the brothers were unaware of the fraud and both were under investigation until their deaths. They spoke to The Associated Press on condition of anonymity because they were not authorized to discuss the case.
Andrew Madoff left behind a $16 million estate. A court-appointed trustee is taking aim at that the sons’ money, filing a lawsuit this summer accusing them of using money from their father’s scheme as their “personal cookie jar”.
Andrew Madoff died on September 3 at the age of 48 after a long battle with cancer, his lawyer announced.
The son of convicted fraudster Bernard Madoff suffered from mantle cell lymphoma.
“Andrew Madoff has lost his courageous battle against mantle cell lymphoma,” lawyer Martin Flumenbaum said.
“He died peacefully at Memorial Sloan Kettering Cancer Center on September 3, 2014, surrounded by his loving family.”
Bernard Madoff, now 76, is serving a 150-year prison sentence after pleading guilty to operating a massive Ponzi scheme estimated to have cost investors $17 billion in lost principal. He used to steal from thousands of average investors, charities, celebrities and others worldwide.
Andrew Madoff died from mantle cell lymphoma aged 48 (photo Getty Images)
His other son, Mark Madoff, committed suicide on December 11, 2010, on the second anniversary of his father’s arrest.
Both Madoff sons denied knowing about the fraud and were never criminally charged in connection with the scheme.
Mark and Andrew Madoff worked at the market-making and proprietary trading division of their father’s Manhattan-headquartered business.
Bernard Madoff’s younger brother, Peter Madoff, 68, who ran the market-making division of the family business, pleaded guilty to doctoring records in 2012 and was sentenced to a 10-year prison term.
Ruth Madoff, 73, the Ponzi scheme architect’s wife, has not been charged. Like her sons, she has maintained she had no knowledge of the fraud.
Andrew Madoff’s funeral arrangements will be private, the attorney said.
According to the Lymphoma Research Foundation, mantle cell lymphoma is a relatively rare blood cancer that got its name because the tumor cells originate from the “mantle zone” of the body’s lymph nodes.
JPMorgan chairman and chief executive Jamie Dimon will be paid $20 million for the past year’s work.
Jamie Dimon’s pay was cut to $11.5 million in 2012 following huge trading losses. This was half the $23 million he received in 2011.
JPMorgan’s profits fell 16% last year, after costs resulting from legal issues dented the bank’s figures.
For 2013, Jamie Dimon was paid $1.5 million as a basic salary, and an additional $18.5 million in shares, the company said.
Over the past year, JPMorgan has paid around $20 billion to regulators for various violations relating to the US financial crisis.
JPMorgan chairman and chief executive Jamie Dimon will be paid $20 million for the past year’s work
Jamie Dimon’s pay was initially cut after the so called “London Whale” trading loss, in which a single JPMorgan trader wracked up losses of $6 billion.
JPMorgan has also been caught up in another high-profile banking scandal – the manipulation of a key interest rate, the London inter-bank offered rate, or Libor.
It also had to pay fines totaling $2.6 billion to settle government and private claims resulting from its handling of the accounts of the convicted fraudster Bernie Madoff. The bank was accused of not reporting its concerns about Bernard Madoff’s investment scheme.
JPMorgan’s net income fell 7.3% for the fourth quarter of 2013 to $5.3 billion, from $5.7 billion in the final quarter of 2012.
JPMorgan Chase has reported a 7.3% drop in profit for Q4 2013 after legal costs relating to the fraudster Bernard Madoff dented earnings gains.
Net income fell 7.3% for the fourth quarter to $5.3 billion, from $5.7 billion in the final quarter of 2012.
JPMorgan said one-off items had damaged income after tax by $1.1 billion.
Separately, Wells Fargo, the US’s biggest mortgage lender, said fourth quarter profits rose 11% to $5.4 billion.
JPMorgan was Bernard Madoff’s principal bank and their business relationship dated back to the 1980s
Wells Fargo cut thousands of jobs in the second half of the year in order to boost earnings.
JPMorgan was Bernard Madoff’s principal bank and their business relationship dated back to the 1980s.
Bernard Madoff, 75, is currently serving a 150-year prison sentence in the US after being found guilty of defrauding investors.
Last week, JPMorgan agreed to pay $2.6 billion to settle government and private claims resulting from its handling of Bernard Madoff accounts. The bank was accused of not reporting its concerns about Bernard Madoff’s investment scheme.
Following a settlement with US prosecutors, JPMorgan Chase has agreed to pay $1.7 billion to victims of the Bernard Madoff fraud.
The settlement comes after Federal prosecutors accused the bank of ignoring red flags about Bernard Madoff’s crimes.
“We recognize we could have done a better job,” said JPMorgan spokesperson Jennifer Zuccarelli.
The bank has agreed to improve its controls as part of the settlement.
While JPMorgan acknowledged failures in its protections against money laundering, the settlement includes a so-called deferred prosecution agreement that allows it to avoid criminal charges.
No individual executives were accused of wrongdoing.
JPMorgan was Bernard Madoff’s primary bank in the later years of a fraud that lasted for decades.
JP Morgan had a relationship with Bernard Madoff dating back to 1986
The bank had a relationship with Bernard Madoff dating back to 1986, according to documents released by the US Attorney’s office.
It ended in 2008 when Bernard Madoff revealed to the FBI that his investment advisory business was a Ponzi scheme.
According to the complaint, Bernard Madoff’s account – account 703 – received deposits and transfers totaling $150 billion over the period from 1986 until the fraud was discovered in 2008, almost exclusively from Madoff Securities.
JPMorgan employees began raising red flags about the account from the late 1990s up until 2008, but no action was taken to alert US regulators.
Bernard Madoff, 75, pleaded guilty to the fraud and is currently serving a 150-year prison sentence in the US.
Over the past year, JPMorgan has paid close to $20 billion in settlements with regulators for various violations relating to the US financial crisis, the so-called “London whale” trading loss, and manipulating the London inter-bank offered rate, or LIBOR.
JPMorgan boss Jaime Dimon has taken a proactive stance in ridding the bank of various investigations into its practices over the past year.
In his annual letter to shareholders from April 2013, Jaime Dimon wrote: “I feel terrible that we let our regulators down.”
The bank is still facing scrutiny from US regulators over its hiring policies in China.
Shares in JPMorgan fell slightly on news of the settlement.