JPMorgan Chase’s latest criminal settlement shows that prosecutors are becoming more creative about getting money to victims of a fraud rather than just putting it into federal coffers. As part of a deferred-prosecution agreement, JPMorgan will pay $1.7 billion to the Justice Department for not maintaining proper anti-money laundering controls and failing to file a “suspicious activity report” on Bernard L. Madoff’s account. The bank is settling over violations of the Bank Secrecy Act, and prosecutors say the bank failed to see numerous red flags about Mr. Madoff’s extensive Ponzi scheme operated through accounts at the bank. More in the New York Times here.
