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Thursday, December 30, 2010

JPMorgan (NYSE:JPM) Sued Over Polaroid, Petters Deal

JPMorgan (NYSE:JPM) has had a lawsuit filed against them by the trustee for Petters Group Worldwide LLC, which claims the giant bank should have known when they sold to Thomas J. Petters that the money had come from a ponzi scheme.

At the time, JPMorgan was the majority owner of Polaroid.

Petters, who was convicted of the scheme and sentenced to 50 years in jail, allegedly acquired the shares of Polaroid with proceeds from the scheme.

“The windfall that JPMorgan would earn on the transaction gave JPMorgan an incentive to ignore red flags that would have revealed the massive Ponzi scheme,” the suit claims.

The suit says JPMorgan received over $240 million on the sale of Polaroid.

JPMorgan closed Wednesday at $42.36, down $0.25, or 0.59 percent.

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