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Written by 7:56 pm Blog, Securities Fraud

JP Morgan Securities Hit with $125 Million for Widespread Recordkeeping Failures 

JP Morgan Securities Hit with $125 Million for Widespread Recordkeeping Failures, featured by top securities f;raud attorneys, The White Law Group

The SEC Fines JP Morgan Securities for Regulatory Failures in Connection with Business Communications 

The U.S. Securities and Exchange Commission on December 17 has reportedly fined J.P. Morgan Securities $125 million for “widespread” failures to keep staff communications on personal mobile devices, messaging apps and emails, and is investigating similar lapses at other firms.  

JP Morgan reportedly admitted to the charges and to violating securities laws, according to the SEC order. The firm also plans to implement certain improvements to compliance policies, in addition to the fine, according to the SEC.   

The SEC said it discovered the firm had been violating rules that require firms to preserve written business communications when the broker was unable to produce records during the course of other investigations.  

The regulator has apparently opened other investigations into firms’ record- keeping practices as a result of JP Morgan’s alleged rules violations, according to Reuters.  

According to the complaint, between January 2018 through November 2020, JPMorgan’s employees often communicated about securities business matters on their mobile devices, using text messages, WhatsApp, and personal email accounts, without preserving the records. The misconduct was reportedly known to senior management, who also used personal devices to discuss business matters, according to the regulator.  

J.P. Morgan Securities has agreed to retain a compliance consultant and conduct a comprehensive review of its policies and procedures relating to the retention of electronic communications found on personal devices, among other remedies.   

The penalty is reportedly one of the first major enforcement actions brought under SEC Chair Gary Gensler, who has pledged to crack down on misconduct by Wall Street companies, according to Reuters.  

Free Consultation with a Securities Attorney  

This is not the first time that JP Morgan Securities has been in trouble with regulators. To learn more, please see:  

FINRA Fines JP Morgan Securities $2.8 Million for Supervisory Failures  

 This information is publicly available and provided to you by The White Law Group.  

If you are concerned about your investments with your financial advisor, the securities attorneys at The White Law Group may be able to help you. For a free consultation, please call the offices at 888-637-5510.  

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. The firm represents investors throughout the country in claims against their brokerage firms.  

For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com 

 

  

  

 

 

Tags: , , , , , , Last modified: December 20, 2021