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JPMorgan to pay over $2.5 billion in Madoff fraud

By Tom Hays

Associated Press

Published: Tuesday, Jan. 7 2014 2:43 p.m. MST

Preet Bharara, U.S. Attorney for the Southern District of New York, announces a settlement with JPMorgan Chase, Tuesday, Jan. 7, 2014 in New York. JPMorgan Chase & Co., already beset by other costly legal woes, has agreed to pay $1.7 billion to settle criminal charges that it ignored obvious warning signs of Bernard Madoff's massive Ponzi scheme, Bharara said Tuesday.

Mark Lennihan, Associated Press

NEW YORK — JPMorgan will pay more than $2.5 billion for missing obvious warning signs of Bernard Madoff's massive Ponzi scheme.

Authorities said Tuesday that the nation's largest bank will forfeit $1.7 billion to settle criminal charges. It also will pay a $350 million civil settlement to the government.

The trustee recovering assets for Madoff investors also announced that the bank will pay $543 million to settle other claims brought on behalf of fraud victims.

The bank says it doesn't believe employees knowingly assisted Madoff's Ponzi scheme. It also says it has taken steps to do better in the future.

The 75-year-old Madoff is serving a 150-year prison sentence after pleading guilty. His fraud was exposed in December 2008.

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