Madoff’s Dirty Money

24 Pages Posted: 28 Feb 2011 Last revised: 21 Mar 2018

See all articles by Linus Wilson

Linus Wilson

University of Louisiana at Lafayette - College of Business Administration

Date Written: March 18, 2018

Abstract

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

Wilson, Linus, Madoff’s Dirty Money (March 18, 2018). Available at SSRN: https://ssrn.com/abstract=1772266 or http://dx.doi.org/10.2139/ssrn.1772266

Linus Wilson (Contact Author)

University of Louisiana at Lafayette - College of Business Administration ( email )

Department of Economics & Finance
214 Hebrard Blvd., Room 326
Lafayette, LA 70504-0200
United States
(337) 482-6209 (Phone)
(337) 482-6675 (Fax)

HOME PAGE: http://www.linuswilson.com

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