JPMorgan Chase gets nailed for fraud in bond case
This story clearly shows that Chase has a history defrauding its customers to benefit itself.
NEW YORK, March 7 (Reuters) – JPMorgan Chase & Co (JPM.N) has settled a lawsuit accusing it of defrauding bond investors out of at least $1.2 billion through bad record keeping, court records show.
The settlement of the five-year-old case comes as banks’ ability to handle paperwork faces intense scrutiny, especially over their mortgage operations.
Investors had accused JPMorgan of deleting records on $46.8 billion of bonds from roughly 6,500 bond issues that had not been cashed in, and then covering up its mistakes.
They said the second-largest U.S. bank did this so it could retain for itself unclaimed bond proceeds that belonged to thousands of investors.
JPMorgan “stole the trust funds and concealed the theft long enough to try to run out the statute of limitations,” an amended complaint filed in 2009 said.
If that wasn’t clear enough, Chase is accused of deleting records so that it would be harder for people to claim bond proceeds so Chase could keep any of the proceeds that went unclaimed.
Bad bad Chase, Fraud, Lawsuits | admin March 7, 2011
