BNP Paribas faces being placed under investigation in Madoff scam probe
France's biggest listed bank, BNP Paribas, and largest in Europe, is set to be placed under formal investigation – one step short of charges being brought - in connection with suspected fraudulent handling of clients' investments in funds that channelled money to US fraudster Bernard Madoff, judicial sources have told Mediapart. A ruling by the Paris appeal court's investigatory chamber found that "Bernard Madoff's own responsibility does not rule out the possibility of fraudulent behaviour by intermediaries such as the BNP." The court cited documents from the US liquidator of the Madoff group, concluding that “it now seems that the bank received millions of dollars in exchange for services that were never provided and while it was in possession of information […] which should have prompted it to investigate BLMIS [Bernard L. Madoff Investment Securities]". The ruling has relaunched an investigation that now threatens the bank with major legal consequences. Laurent Mauduit reports.
AA Paris court has called for an investigation into the way French bank BNP Paribas handled clients' investments in funds that channelled money to US fraudster Bernard Madoff. BNP appears to have been aware of the risks of investing in the funds but failed to warn clients, while at the same time receiving large commission payments from Madoff, suggesting that the bank may itself be guilty of fraudulent behaviour, the court said.
