Bloomberg reports that JPMorgan Chase & Co. and BNP Paribas sued K1 Invest Ltd. and K1 Group founder Helmut Kiener, claiming they lost money through a â??fraudulent circular investment schemeâ?� conducted by K1 and its affiliates.

The lawsuits, naming various K1 entities as defendants, were filed yesterday in New York State Supreme Court in Manhattan. JPMorgan filed on behalf of Bear Stearns International Ltd., which it acquired in 2008, and said it is owed at least $82 million. BNP Paribas said it â??suffered more than $70 million in damages.â?�