It has been just reported that JPMorgan Chase has been accused of destroying $50,000,000 fortune. Here are more details about this issue below.
JPMorgan Chase makes headlines again
The family of a wealthy investor, who is suffering from dementia, alleges that a banking giant exploited his condition and squandered a fortune worth $50 million.
According to Bloomberg, Yoon Doelger claims that her husband, Peter, had started receiving treatment for dementia when he signed a letter freeing the bank from any responsibility for losses incurred as a sophisticated investor.
The lawsuit asserts that the bank wiped out the Doelgers’ wealth by providing loans worth millions of dollars to Peter, who then used them to engage in leveraged bets on oil and gas securities.
According to the reports coming from the online publication the Daily Hodl, Yoon says she finally hit the panic button and liquidated the holdings in March of 2020.
At that point, the $50 million fortune had evaporated, leaving the couple with $400,000 from JPMorgan’s investments and $1.1 million in another account.
JPMorgan has filed a counterclaim stating that because Peter signed that letter, the couple’s claims have no merit.
And in a statement, JPMorgan says it “repeatedly suggested to Mr. Doelger that he diversify and reduce his overall exposure.”
“Mr. Doelger signed an agreement, delivered to Mr. Doelger and his personal attorney, acknowledging that advice and affirming that he was ‘financially knowledgeable and sophisticated’ and ‘fully aware of the concentration risk.’”
Yoon made sure to state the fact that the couple is now living with relatives after selling their condominium in Boston.
“We had 100% trust in them that they will manage our assets. We didn’t expect them to make us a fortune, but at least make us comfortable.”
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