Madoff’s Dirty Money
24 Pages Posted: 28 Feb 2011 Last revised: 21 Mar 2018
Date Written: March 18, 2018
The Madoff Ponzi scheme was sitting on a cash hoard in excess of a billion dollars by the 1990s. Most of that money came into and stayed in the 703 account at JPMorgan Chase or it was transferred to one of eleven other bank accounts. The author uses previously unanalyzed data from the Security Investor Protection Corporation (SIPC) to estimate that the balances in the JPMorgan Chase account were so large that JPMorgan Chase earned in $907 million pre-tax from the Madoff deposits at the bank from 1986 to 2008.
Keywords: banks, fraud, Madoff, Money Laundering, Ponzi schemes, pyramid schemes
JEL Classification: G, K
Suggested Citation: Suggested Citation