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Check Out JPMadoff.com—The True Horror Series Starring Fraud Street and You!

forbes.com | August 15, 2014

By Laurence Kotlikoff

Forget House of Cards, Game of Thrones, Madmen, and all the other series you can’t wait to restart. There’s a new series out that beats them all. It went live yesterday on this channel. It’s free for the viewing, well, actually for the reading. It’s as shocking and scary as anything you’ll see in The Walking Dead.

No, there no pretend zombies eating your mother-in-law. Instead, there are real-life, crooked felons eating your lunch. They star, in Season 1, the JPMorgan Chase bankers who spent two decades laundering Bernie Madoff’s money without a single one going to jail or, it seems, even losing his job. Season 2 may feature other JPMorgan bankers (all of whom are not just walking the streets, but still managing people’s money) whose financial malfeasance has produced over $28 billion in JP Morgan fines over the past four years. Seasons 3 and beyond? No one knows. But Citigroup, Bank of America, Morgan Stanley, and Goldman Sachs and their bankers will, no doubt, play leading roles.

The authors of this new page-turner — JPMadoff: The Unholy Alliance between America’s Biggest Bank and America’s Biggest Crook – are Helen Davis Chaitman and Lance Gotthoffer. Chaitman is one of the top lawyers in the country. She represents a large number of Madoff victims and knows the Madoff fraud inside and out – in part because she’s spent the last five years interviewing Madoff himself. Gotthoffer is one of our nation’s top litigators.

The book is serialized because the miscarriage of justice by Wall Street, better known as Fraud Street, is ongoing. How we react to this ongoing victimization will determine how the series ends.

There are two endings. Ending 1: We leave our money in the big banks and keep playing the Wheel of Misfortune presented at www.jpmadoff.com. This is one of the best as well as scariest graphic displays you’ll ever see. Click on any of the 26 slices of the wheel’s pie, such as checking accounts or credit card holders or veterans or armed services members, and the wheel will spin showing you how much JPMorgan Chase has paid in recent years for defrauding people falling in those categories. Those people, to be clear, are we the American people.

Ending 2: We move our money out of the big banks until our government, which is being bribed out the wazoo by Fraud Street, starts enforcing the nation’s banking laws, including sending corrupt bankers to jail and also passes H.R. 3482 and S. 1725, which I discuss below.

I’m hoping for Ending 2. I’ve done my part. I closed my Bank of America checking account and do all my personal banking with tiny Cambridge Trust Company in Cambridge, MA.

Now to be fair, Bank of America hasn’t paid $28 billion in fines in recent years for defrauding the public. It’s paid far more! In fact, in just the last two weeks it was hit for a $16 billion fine for selling fraudulent mortgage-backed securities through its Merrill Lynch brokerage arm. This brings to a whopping $70 billion the fines Bank of America has paid since 2008 just for mortgage-related fraud! That’s more than the annual GDP of more than half the countries on the planet.

And don’t just move your money. Move your securities – your stocks, bonds, real estate investment trust holdings, etc. from any “SPIC insured” brokerage firm, large or small. As I’ve described in a series of recent columns posted at www.kotlikoff.net, virtually all of our brokerage firms are participating in a massive ongoing insurance scam run by SIPC — Fraud Street’s so called “Security Investor Protection Corporation.”

SIPC will surely be an early episode in the jpmadoff.com series. Not only does SIPC routinely renege on its promise to ensure our brokerage accounts against fraud. (Just read about SIPC’s court victory, last month, over the victims of Allen Stanford’s Ponzi scheme.) It puts us at extreme double jeopardy by standing ready to sue those of us who withdraw our brokerage account assets in the years (up to six years!) prior to the fraud’s discovery – potentially up to every dollar withdrawn over that period.

Frankly, I wouldn’t get within a million miles of a SIPC-insured brokerage account. Having seen first hand from relatives, friends, and colleagues their treatment by Fraud Street’s “insurance company,” I most strongly recommend a) closing your brokerage account and b) either investing in mutual funds with independent, third-party custodians or taking physical possession of your stock certificates, bond certificates, and other securities and putting them in your personal safekeeping. Hiding your securities under your mattress would be far safer than letting them be “insured” by SIPC.

Also, while you are closing your brokerage account take the time to tell your brokerage firm that you’ll be happy to use them again, but only after passage of the bi-partisan bill H.R. 3482 and S. 1725 – Restoring Main Street Investor Protection and Confidence Act.

This act forces SIPC to fulfill its insurance commitments and bars it from suing innocent victims for doing what investors are supposed to do – invest, enjoy positive returns, and spend the proceeds of their savings. Since our brokerage firms collectively run SIPC and oversee its insurance scam, don’t rely on your brokerage firm to do the right thing. Take the time to contact your members of Congress and lobby for this bill – if not for your own sake, for your children’s. No one in our country will be able to safely invest via brokerage accounts at any point in the future until this bill is passed and signed into law.

You’ll need to read episode 1 of JPMadoff yourself, but here’s a quick synopsis of Episode 1 of Series 1. Chaitman and Gotthoffer start off with Bankers Trust kicking Madoff out the door based, it seems, on suspicions that he was engaged in fraud. JPMorgan Chase surely knew why Bankers Trust took this action. But, nonetheless, JPMorgan opened its doors – and its worldwide facilities – to Madoff.

The authors lay out the fact that Norman Levy (Madoff’s “surrogate father’) and Madoff transferred some $100 billion over a ten year period between their accounts at Chase – in a pattern that the folks at JPMorgan Chase most surely have recognized was illegal.

Based on interviews with Madoff, the authors explain that, on numerous occasions, Chase officers called Madoff and Levy in to question them on their illegal activities. Yet, the bank allowed the activities to continue.

Of Madoff’s 200 employees, 12 people knew that Madoff was defrauding his investment advisory customers. Those were, the story goes, the only 12 people in the world who knew that Madoff was embezzling funds.

Not quite. The bankers at JPMorgan Chase who monitored Madoff’s account surely knew that Madoff was taking money from pension funds, charities, family foundations, and individual investors. They surely knew because they could see the checks being deposited into Madoff’s account. And they surely knew that Madoff was not buying securities with that money. Instead he was transferring billions of dollars to his friends while also transferring billions of dollars overseas.

Yet, the government gave JPMorgan Chase officers a total pass. Yes, the bank paid a wrist-slapping $1.7 billion. But no JPMorgan Chase officer went to jail, disgorged bonuses, or lost his job. That’s the American way, unless we change things.

And, again, the Wheel of Misfortune shows that JP Morgan’s conduct in the Madoff case was no aberration. Madoff needed a bank that would keep the lid on what he was doing. And, according to jpmadoff.com, JPMorgan Chase fully accommodated Madoff. Indeed, even after the London branch of JPMorgan Chase reported to the British government that Madoff was operating a Ponzi scheme, the folks at JPMorgan Chase in New York City kept his account going – until they were forced to close the account because Madoff confessed to federal authorities.

The authors are very clear on their goals. As lawyers representing clients, they want JPMorgan Chase to fairly compensate the victims of Madoff’s fraud, whom the authors represent. They want JPMorgan Chase to own up to its responsibility for sheltering Madoff for 20 years and change its practices so that neither this type of financial fraud, nor the other acts of financial fraud in which JPMorgan Chase has engaged over the recent past—all documented on their website—can ever happen again. They also want JPMorgan Chase to make a pledge to the American people that it will not shelter criminals and that it has zero tolerance for any bank employee that shelters criminals. And they want JPMorgan Chase to fire all dishonest employees and force them to disgorge all the bonuses they were paid by the bank.

But most of all the authors of www.jpmadoff.com want you to quit your role in this tragic play and get to safety by moving your money out of the large, serially malfeasant banks, close your “SPIC-protected” brokerage accounts, and get your members of Congress to pass H.R. 3482 and S. 1725!

Back to August 2014 Archive

CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea—it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-2352 for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online).

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