A new lawsuit claims that banking giant JPMorgan Chase helped a Ponzi scheme scam investors out of millions of dollars.
Bank Accused of Enabling Fraud
The lawsuit, filed by investor David Stapleton, alleges that JPMorgan Chase knowingly enabled a fraudulent scheme run by Sanjeev Acharya, the CEO of Silicon Sage Builders. Acharya allegedly raised over $119 million from 250 investors for real estate projects that were mostly unprofitable. He’s accused of using classic Ponzi scheme tactics to pay early investors with money from new investors.
Stapleton claims that JPMorgan Chase played a key role in the scheme, hosting all the accounts and processing the transactions that allowed Acharya to move money around. The lawsuit alleges that the bank had 77 accounts related to the scheme and processed over 130,000 transactions.
Bank Employee Allegedly Knew of Fraud
The lawsuit also claims that a JPMorgan Chase business relationship manager was aware of the fraudulent scheme and actively helped manage the accounts, even bypassing the bank’s own fraud prevention protocols.
Seeking Damages
Stapleton is seeking compensation for the losses caused by the fraudulent scheme, including punitive damages, attorney’s fees, and other remedies. He argues that JPMorgan Chase’s actions directly contributed to the scheme’s success.
Important Note: This is just one side of the story. JPMorgan Chase has not yet responded to the allegations. It’s important to remember that these are just accusations and the bank has the right to defend itself in court.
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