When Misrepresentations Lead To Investor Losses
Two JPMorgan Chase Affiliates Ordered to Pay $151M By the SEC
Broker-dealers are required to ensure that customers are given accurate and complete information when it comes to investments that they are recommending. This is one of the reasons that in a recent enforcement action, the US Securities and Exchange Commission (SEC) announced that JPMorgan Securities and JPMorgan Investment Management agreed to pay a combined $151M in civil penalties and investor payments to settle a number of enforcement actions over allegations that included misleading disclosures, as well the failure to act in clients’ best interests and a breach of fiduciary duty.
Shepherd Smith Edwards and Kantas (investorlawyers.com) represent clients who have suffered losses because of misrepresentations and omissions, breaches of fiduciary, Regulation Best Interest violations, due diligence failures, and more.
A Few of the SEC’s findings:
In one case, the regulator found that JPMorgan Securities gave customers investing in its Conduit private funds misleading disclosures. The way investors’ money was managed ended up exposing them to market fluctuations and “declining values for certain shares.” Now, the firm will distribute $90M across more than 1500 Conduit investor accounts. It will also pay a $10M civil penalty.
The JPMorgan affiliate purportedly did not disclose a conflict of interest, which is that it had a financial incentive to recommend its proprietary Portfolio Management Program rather than third-party options. JPMS will pay a $45M penalty.
JPMorgan Securities recommended its costlier Clone Mutual Funds over exchange-traded funds that provided identical portfolios but were more affordable. Cost differences were purportedly not disclosed nor were there reasonable grounds for thinking these recommendations were in customers’ best interests. JPMS now has to give back $15.2M to clients that were affected.
How Can Our Skilled Misrepresentations and Omissions Lawyers Help?
For over 30 years, Shepherd Smith Edwards and Kantas has represented investors in pursuing the damages they are owed by negligent or fraudulent broker-dealers. We know how devastating it can be to lose investments and to have a reason for that be that your financial advisor breached their fiduciary duty to you or committed some type of stockbroker fraud or misconduct.
Brokerage firms are supposed to ensure that they are only making recommendations that are in a customer’s best interests. With Regulation Best Interest now in effect, violation of that rule can also be grounds for an investor’s claim for damages.
Even if a regulatory case has been brought against your broker-dealer, you still may be able to pursue your own claim in FINRA arbitration.
Representing Investors Against JP Morgan Financial Advisors
Our broker misconduct attorneys continue to investigate JP Morgan brokers following serious customer losses. One example of this is now barred financial advisor Edward Turley He has been involved in multiple customer disputes in which, at one point, the claimants were seeking a collective $62M in damages.
According to AdvisorHub, by April 2024, JP Morgan Advisors paid over $54M to settle many of these complaints. Once a top earner and an EVP at JP Morgan Securities, Turley has been accused of unsuitable trading, unsuitable investment recommendations, overconcentration, and more.
Contact our Misrepresentations and Omissions Lawyers today to request your free initial case assessment. You can also call (800) 259-9010.