How I Know JPMorgan (NYSE: JPM) Was Complicit in the Biggest Ponzi Scheme Ever

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I've said it before, and even though I've been threatened, in not so subtle ways, and been warned not to piss off certain people in power, I'm going to keep on saying it:

JPMorgan (NYSE: JPM) is a criminal enterprise.

Yesterday (Monday) the mega enterprising bank began talks to settle civil and criminal charges that it ignored signs its banking client Bernie Madoff was a Ponzi-running, lying, cheating crook. (Which he was.)

It looks like the brazen bank will pay $2 billion to get out of jail free; free, of course being a relative charge. But I call it free because JPM has been posting record profits, and another multi-billion-dollar fine is unlikely to change that.

So what that they've paid about $20 billion in settlement fines in the last 12 months? They're still in business. They're in the business of making insane amounts of money to pay insane fines for insane criminal activity.

I'll say it again… JPMorgan Chase is a criminal enterprise.

For this new payoff, I mean payment, to the government, JPM's criminal ways were nodded to and shunted aside in a deferred prosecution agreement with the feds. The tradeoff will be such that JPM will swear it will do no evil (just the evil they will list, not any of the other evils they do that they don't have to list) and promise to be good while they're being watched. And if they don't do any more Ponzi-schemer aiding and abetting in the probably five years they will be watched, the deferred prosecution agreement dissolves. After that, they have a Whale of a party, probably over in London, where they hide other stuff.

I'm going to keep this short. There's another reason, besides not wanting to repeat myself over and over, and I'll tell you the other reason on Thursday.

So keeping this short, I'm just going to say one thing to explain JPMorgan's role in the biggest Ponzi scheme in history...

JPMorgan's (NYSE: JPM) Ponzi Scheme Role

In my expert opinion, it's just not possible that JPMorgan (and plenty of other intermediaries and feeder funds) didn't know that Madoff was running a scheme.

I didn't know anything about Madoff. No one ever asked me about him or what he might be doing to generate the returns he was generating. But any back-of-the envelope calculation of numbers – based on what he said he was doing – would have come up with a giant "does not compute" answer.

Here's the deal…

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About the Author

Shah Gilani is the Event Trading Specialist for Money Map Press. He provides specific trading recommendations in Capital Wave Forecast, where he predicts gigantic "waves" of money forming and shows you how to play them for the biggest gains. In Short-Side Fortunes, Shah shows the "little guy" how to make massive size gains – sometimes in a single day – by flipping large asset classes like stocks, bonds, commodities, ETFs and more. He also writes our most talked-about publication, Wall Street Insights & Indictments, where he reveals how Wall Street's high-stakes game is really played.

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  1. IV007 | January 9, 2014

    Shah, once again great job..
    JPM will be unleashing it's goons or lawyers I wouldn't be surprised, since you lay it all out and say it the way it is. Be safe

  2. Keith Jones | February 17, 2014

    Hi Shah,

    Regarding JP Morgan, there has been another more recent case where they held supposedly customer segregated accounts under Peregrine Financial Group, run by Russel Wassendorf.

    Mr. Wassendorf is now serving 50 years in a US jail after fleecing his customers of over US$200 million over 20 years. (I know, I was one of them!) He was falsifying his records with the bank just with Photoshop & a fax machine & the bank let him get away with this for all those years. It was only a couple of years ago when they required a digital statement that he tried to commit suicide.

    There should be a legal case against JP Morgan for allowing him to siphon supposedly safe funds out of customer accounts. Under the bankruptcy trustee customers have received to date 37% of their funds back, but we will probably never see the rest. This is differrent to the MF Global case where customers were repaid in full because it all happened in a relatively short span of time. In Wassendorf's case it was conducted over 20 years so difficult to trace/recover.

    Regards,

    Keith Jones

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