JPMorgan Settlement With SEC Recalls Case Against Goldman Sachs. June 22 (Bloomberg) -- JPMorgan Chase & Co.’s deal to settle a U.S. regulator’s claims that the bank misled buyers of mortgage-linked securities before the housing market collapsed echoed a case brought last year against Goldman Sachs Group Inc.
JPMorgan agreed to pay $153.6 million to end a Securities and Exchange Commission suit. The SEC alleged that the New York- based bank failed to tell investors in 2007 that a hedge fund helped pick, and bet against, underlying securities in the collateralized debt obligation they purchased. In July, Goldman Sachs paid a record $550 million for failing to inform clients in 2007 that it allowed a hedge fund that also bet against housing to help formulate the CDOs. “It’s the same general allegation of wrongdoing,” Robert Khuzami, enforcement chief of the SEC, said yesterday in a Bloomberg Television interview. “The message in both cases is if you engage in this kind of wrongdoing, if you mislead investors, you’re going to pay a fine.” ‘Messed Up’ Charges J. P. Morgan Securities with Fraudulent Bidding Practices Involving Investment of Municipal Bond Proceeds. Washington, D.C., July 7, 2011 – The Securities and Exchange Commission today charged J.P.
Morgan Securities LLC (JPMS) with fraudulently rigging at least 93 municipal bond reinvestment transactions in 31 states, generating millions of dollars in ill-gotten gains. To settle the SEC’s fraud charges, JPMS agreed to pay approximately $51.2 million that will be returned to the affected municipalities or conduit borrowers. JPMS and its affiliates also agreed to pay $177 million to settle parallel charges brought by other federal and state authorities. “JPMS improperly won bids by entering into secret arrangements with bidding agents to get an illegal 'last look' at competitors’ bids,” said Robert Khuzami, Director of the SEC's Division of Enforcement. “Municipal issuers and investors didn't stand a chance against the fraudulent strategies JPMS and others used to guarantee profits.
" J.P. Morgan Settles SEC Charges in Jefferson County, Ala. Illegal Payments Scheme; 2009-232; Nov. 4, 2009. Washington, D.C., Nov. 4, 2009 — The Securities and Exchange Commission today charged J.P.
Morgan Securities Inc. and two of its former managing directors for their roles in an unlawful payment scheme that enabled them to win business involving municipal bond offerings and swap agreement transactions with Jefferson County, Ala. This is the SEC's second enforcement action arising from Jefferson County's bond offerings and swap transactions. J.P. Morgan Securities settled the SEC's charges and will pay a penalty of $25 million, make a payment of $50 million to Jefferson County, and forfeit more than $647 million in claimed termination fees. The SEC alleges that J.P. J.P. "The transactions were complex but the scheme was simple. Glenn S. According to the SEC's complaint filed against LeCroy and McFaddin in U.S. The SEC alleges that the scheme began in July 2002, when LeCroy and MacFaddin solicited Jefferson County on behalf of J.P. J.P. Morgan to Pay $153.6 Million to Settle SEC Charges of Misleading Investors in CDO Tied to U.S. Housing Market.
Washington, D.C., June 21, 2011 – The Securities and Exchange Commission today announced that J.P.
Morgan Securities LLC will pay $153.6 million to settle SEC charges that it misled investors in a complex mortgage securities transaction just as the housing market was starting to plummet. Under the settlement, harmed investors will receive all of their money back. In settling the SEC’s fraud charges against the firm, J.P.
Morgan also agreed to improve the way it reviews and approves mortgage securities transactions. The SEC alleges that J.P. The SEC separately charged Edward S. “J.P Morgan marketed highly-complex CDO investments to investors with promises that the mortgage assets underlying the CDO would be selected by an independent manager looking out for investor interests,” said Robert Khuzami, Director of the Division of Enforcement.