Post # 1000 Chase confiscates Ponzi scheme money

Signing off with our last post for 2010, which happens to be our 1000th post as well, is a really slimy JP Morgan Chase story that does a good job at illustrating how Chase looks out for itself first.

In the earlier part of this decade, a Ponzi schemer named Tom Petters was busy scamming people out of almost 4 billion dollars.  At the time, JPMorgan Chase’s own in-house hedge fund owned the Polaroid company and they cut a deal to sell it to Petters for almost $500 million.

JPMorgan Chase is now being sued by the trustee for the Ponzi scheme victims for $300 million and is accused of knowing the purchase was with money that was il-derived, but proceeding anyways so they could profit from it.

But the really bad part is that JPMorgan Chase is also accused of confiscating money that Petters had in the banks accounts just days AFTER HIS ARREST:

“This was JPMorgan trying to step ahead of the Ponzi scheme’s victims and creditors to the tune of $20 million bucks,”

In essence, Chase saw the writing on the wall and grabbed whatever it could to satisfy it’s own claims, regardless of whether they were entitled to it or any claims others might have had on it.

Chase’s philosophy must be that possession is 9/10 of the law.

Well now they are getting sued over it.  Good.

And happy new year!

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