With $3.758 trillion in total assets, as of September 30, 2021, JPMorgan Chase & Co. (JPM) is the largest bank in the United States and the fifth-largest globally. It is also a major financial and investment banking service provider, the biggest lender to the fossil fuel industry, a custodial bank, and a universal bank.
With its corporate headquarters in Manhattan, JPMorgan Chase’s current structure derives from J.P. Morgan & Co., Chase Manhattan Bank, Bear Stearns, Bank One Corp., and Washington Mutual.
It has several subsidiaries, including broker-dealer and investment advisor J.P. Morgan Securities, LLC (JPMS). J.P. Morgan Wealth Management uses the brokerage firm to provide investment services and products to its clients.
Our broker-dealer negligence attorneys represent investors who have suffered losses while working with a J.P. Morgan Securities financial advisor. Contact us today at Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm at investorlawyers.com).
The US Securities and Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC) fined J.P. Morgan Securities $200M over recordkeeping and communications violations. The latter included the alleged use of unapproved channels, including WhatsApp and text messaging on personal devices, to communicate about business-related activities.
The Office of the Comptroller of the Currency (OCC) ordered JPMorgan Chase Bank to pay a $250M penalty. The OCC accused the bank of “unsafe and unsound” practices involving its internal controls, as well having both an “insufficient” audit program and a “weak” management/control framework for fiduciary activities. JPMorgan Chase Bank has since fixed these issues but did not agree to or deny the OCC’s findings.
JPMorgan, J.P. Morgan Securities, and JPMorgan Chase Bank, NA (JPMC) reached a $920M spoofing settlement with the CFTC and the SEC and a deferred prosecution deal with the US Department of Justice (DOJ).
Fifteen traders were accused of causing over $300M in losses to the Treasury market and precious metal participants. JPMorgan Chase acknowledged responsibility for the traders’ actions. A year later, a related class action securities lawsuit was reached between JPMorgan Chase and investors for $15.7M.
In the SEC’s probe into abusive practices involving American depositary receipts (ADRs), JPMorgan Chase consented to pay over $135M.
J.P. Morgan Securities and JPMorgan Chase Bank NA paid $267M and admitted wrongdoing after the SEC accused them of not disclosing conflicts of interest to clients. This included not notifying the latter that the two financial firms preferred to invest customers in their own proprietary investment products. In a parallel case, JPMorgan Chase Bank consented to pay a $40M penalty to the SEC.
JPMorgan consented to pay $2.05B in penalties and fines to resolve criminal and civil charges over its alleged role in the $65B Bernie Madoff Ponzi scam. The bank was accused of not doing enough to stop Madoff from defrauding investors. It paid another $30M to the OCC over related matters.
The DOJ announced that JPMorgan had consented to pay $13B to resolve investigations into its business practices involving mortgage-backed securities (MBSs) leading up to the 2008 economic crisis. Most of the alleged wrongdoing involved Washington Mutual and Bear Stearns before JPMorgan acquired them.
For more than 30 years, our broker misconduct attorneys have represented investors in FINRA arbitration, mediation, and litigation against JPMorgan and its registered representatives. This included winning a $4M FINRA arbitration award against J.P. Morgan Securities for a client.
The investor had worked with now-fired J.P. Morgan Securities broker Ed Turley. The former San Francisco financial advisor placed the claimant’s funds in unsuitable investments and used a complex strategy involving borrowing on margin without her knowledge or permission.
Turley’s ex-customers are reporting over $55M in losses.
J.P. Morgan Securities Sold Northstar Financial Services (Bermuda) and Old Mutual (Bermuda) Products to CustomersSSEK Law Firm continues to investigate the brokerage firms that sold investments in Northstar (Bermuda) and Old Mutual (Bermuda) products to foreign nationals. With both entities now in liquidation and owner billionaire Greg Lindberg behind bars, investors have been blindsided by their losses. They had no idea their brokers placed their funds in offshore investments that could prove risky.
J.P. Morgan Securities is one of the broker-dealers that unsuitably recommended Northstar Financial Services (Bermuda) and Old Mutual (Bermuda) investments. In mid-2021, SSEK Law Firm filed a six-figure Old Mutual (Bermuda) arbitration claim against the firm on behalf of a Mexico investor.
Seasoned Securities Law Firm Representing Investors Against JPMorgan ChaseSSEK Law Firm has successfully gone up against the largest US brokerage firms on behalf of investors. We have represented thousands of clients in recovering millions of dollars in damages. Call our skilled broker-dealer misconduct attorneys at