JPMorgan has officially signed off on a $1.7 billion settlement laying to rest complaints about its dealings with infamous Ponzi schemer Bernard Madoff. Prosecutors accuse the bank of turning a blind eye to Madoff's frauds—the bank filed a Suspicious Activity Report on Madoff with UK regulators in 2008, but neglected to do anything similar in the US. Some funds from the fine will reportedly go into a fund to compensate Madoff's victims, according to CNN.
"We do not believe that any JPMorgan Chase employee knowingly assisted Madoff's Ponzi scheme," a spokesperson said. The Justice Department must agree, because no JPMorgan executives will be penalized in the deal, the Wall Street Journal reports. The deal is reportedly a deferred prosecution agreement, meaning prosecutors will file charges that will be dismissed if the bank meets certain conditions. Individuals aren't usually charged in such cases, but it's also rare for Bank Secrecy Act violations to be settled in this manner. (Read more JPMorgan Chase stories.)