The defrauded investors demand that JPMorgan provides them with access to all documents and electronic data related to Bar Works Inc, a Ponzi scheme operated by Bitcoin scammer Renwick Haddow.
A group of 27 Chinese investors who have been defrauded by Bar Works, a Ponzi scheme operated by Renwick Haddow, also known for his Bitcoin scams, are pushing to get access to documents and data from JPMorgan Chase & Co. (NYSE:JPM) and JPMorgan Chase Bank, N.A. As FinanceFeeds has reported earlier, the investors are suing the bank for allegedly aiding and abetting Haddow’s and the Bar Works Entities’ fraudulent scheme.
As per the latest filings with the New York Southern District Court, seen by FinanceFeeds, the investors are requesting that JPMorgan:
- Produces all documents and electronic data related to the Bar Works entities;
- States the identity of any person who opened an account or was listed as an authorized person with respect to any account related to Bar Works;
- Produces all documents related to Bar Works, Renwick Haddow, Jonathan Black, Zoia Kyselova aka Zoe Miller aka Zoia Haddow aka Koia Kyselova;
- Produces all documents reflecting the receipt or transfer of any funds into or out of the above-mentioned accounts, including information related to the identity of the originating institution or the receiving institution.
Let’s recall that the defrauded investors allege that JPMorgan had actual notice that Haddow was laundering investors’ money, as a result of Bar Works Inc’s deposits being immediately transferred out of the business operating account to known overseas money laundering havens such as Mauritius, the Seychelles and Morocco.
According to the plaintiffs in the case, there were numerous “red flags” that JPMorgan should have noticed and should have reacted to. The list of such “red flags” include suspicious wire activity with offshore entities. “Through the bank account with JPMorgan, Haddow frequently engaged in transactions with high-risk, offshore entities, such as so-called “binary trading” operations”, the plaintiffs say.
The plaintiffs assert seven causes of action against JPMorgan: (i) knowing participation in a breach of trust; (ii) aiding and abetting embezzlement; (iii) aiding and abetting fiduciary breach; (iv) aiding and abetting conversion; (v) unjust enrichment; (vi) commercial bad faith; and (vii) gross negligence.
The plaintiffs claim a total of $3,050,000 in damages.
The case is captioned ZHAO et al v. JPMorgan Chase & Co., et al (1:17-cv-08570).