NYC judge tosses Madoff trustee's $19B bank claim

Bernard Madoff, chairman of Madoff Investment Securities, returns to his Manhattan apartment after making a court appearance Wednesday, Dec. 17, 2008 in New York. (AP Photo/Jason DeCrow)

November 2, 2011 4:45:22 AM PDT
A New York City judge has rejected a $19 billion claim a trustee recovering money for Wall Street swindler Bernard Madoff's investors demanded from JPMorgan Chase, a bank used by the disgraced financier. The ruling also eliminates most of a $2 billion claim against UBS AG.

Federal Judge Colleen McMahon says trustee Irving Picard doesn't have standing.

Picard claimed JPMorgan knew about Madoff's multi-decade fraud and UBS aided and abetted the scheme. A spokeswoman says Picard will appeal and notes Tuesday's ruling didn't determine the merit of allegations of wrongdoing by JPMorgan Chase & Co. and UBS.

Spokeswomen for JPMorgan and USB say their banks are pleased with McMahon's decision.

Madoff pleaded guilty to fraud and is serving a 150-year prison sentence.