Written by The White Law Group• August 13, 2025• 12:35 pm• FINRA SEC Sanctions, Securities Fraud Articles

JP Morgan Securities: Complaints and Regulatory History Overview

JP Morgan Securities LLC Overview, featured by top securities fraud attorneys, The White Law Group

JP Morgan Securities LLC – Regulatory History Review

The White Law Group is investigating potential securities lawsuits involving JP Morgan Securities LLC (CRD#: 79 / SEC#: 801-3702, 8-35008), a dual-registered broker-dealer and investment adviser. A subsidiary of JP Morgan Chase, the largest bank in the U.S., the firm has a significant regulatory history. According to FINRA BrokerCheck, JP Morgan Securities reportedly has 541 disclosure events on record.

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Broker-dealers may face regulatory actions from FINRA and the SEC, including censures, fines, suspensions, restitution, and supervisory sanctions. These can have serious implications for the reputation of the firm.

SEC & FINRA Sanctions Against JP Morgan Securities

FINRA Fines for IPO Prospectus Failures

August 2025: FINRA censured JP Morgan Securities and imposed a $150,000 fine for failing to ensure the proper delivery of IPO prospectuses to institutional clients. Hundreds of IPOs were affected between 2018 and 2021, as supervisory systems were inadequate.

Supervisory Failures in Preferred Stock Trades

July 2025: FINRA sanctioned the firm $350,000, along with $157,505 in restitution and over $1.6 million in disgorgement, for supervisory failures tied to short-term trading of syndicate preferred stocks. Representatives allegedly recommended unsuitable short-term trades that resulted in investor losses.

Regulation M & Supervisory Violations

April 2025: FINRA found 250 instances of late or inaccurate securities distribution filings. The firm also lacked supervisory procedures to ensure compliance, leading to additional sanctions.

Short Interest Reporting Errors

December 2024: FINRA fined the firm $3 million for inaccurately reporting approximately 820,000 short interest positions involving 77 billion shares over 16 years. Supervisory systems were deemed inadequate.

SEC Charges for Breach of Fiduciary Duty

November 2024: The SEC charged JP Morgan affiliates with misleading disclosures, breaches of fiduciary duty, and unauthorized transactions. The firms agreed to pay $151 million in penalties and reimbursements to affected investors.

Electronic Communications Violations

June 2023: SEC fined the firm $4 million for improperly deleting 47 million emails from 8,700 inboxes.

December 2021: SEC fined JP Morgan $125 million for widespread failures in retaining business communications sent via personal devices and apps.

Additional Sanctions

August 2017: FINRA fined JP Morgan $800,000 (part of a $4.75M joint fine) for market access rule violations.
December 2017: FINRA fined $2.8 million for failures to follow SEC’s Customer Protection Rule.
January 2016: SEC imposed $4 million fine for false statements about advisor compensation.
December 2015: SEC settlement required $267 million for failure to disclose conflicts of interest related to proprietary products.

Broker Misconduct & Customer Complaints

Like other large broker-dealers, JP Morgan Securities has faced issues with misconduct by individual advisors:

Edward “Ed” Turley (CRD#: 1872294): Barred in 2022 after refusing testimony in a FINRA investigation tied to unauthorized trades; customers alleged $62 million in damages.
Antoine Souma CRD#: 4210987): Barred in 2023 for “selling away” and providing misleading account reports.
Trevor Rahn (CRD#: 2196155): Suspended in 2021 for 18 months and fined $10,000 for unauthorized and unsuitable trading.
Multiple Brokers (2016): Barred from the industry for misconduct tied to unsuitable recommendations and misrepresentations.

Brokerage firms like JP Morgan Securities are responsible for supervising their representatives. Failure to do so can expose them to liability for investor losses.

FINRA’s Supervision Rules

FINRA requires firms to establish and enforce supervisory procedures (Rule 3110). Repeated lapses at JP Morgan Securities highlight risks for investors, particularly when brokers engage in unsuitable recommendations or unauthorized trading. Investors may be able to pursue claims for negligent supervision through FINRA arbitration.

Investor Recovery Options

Investors often question whether to join a class action or pursue individual FINRA arbitration. For those with substantial losses (e.g., over $100,000), arbitration is often the more effective recovery option.

Free Consultation with Securities Attorneys

If you invested with JP Morgan Securities and believe you were the victim of broker misconduct or supervisory failures, The White Law Group may be able to help.

For a free consultation, please call 888-637-5510.

The White Law Group, LLC is a national securities fraud, arbitration, and investor protection law firm. Since 2010, the firm has handled more than 800 FINRA arbitration cases nationwide, representing investors in claims involving: