JPMorgan Chase Paying $100,000,000 To Customers As Bank Settles Wave of Allegations From U.S. Securities and Exchange Commission

JPMorgan Chase is handing $100 million to customers after settling a wave of allegations from the U.S. Securities and Exchange Commission.

The bank is settling five separate cases with the agency and will pay an additional $51 million to regulators, for a total of $151 million.

The alleged violations include misleading disclosures, breaches of fiduciary duty and prohibited trades.

Customers who invested in the bank’s “Conduit” products will receive $90 million from the bank directly, and the bank will pay an additional $10 million to a civil fund that will also be distributed to Conduit investors.

The SEC says affected customers were not told that JPMorgan would exercise total control over when to sell shares and how much to sell.

“As a result, investors were subject to market risk, and the value of certain shares declined significantly as JPMorgan took months to sell the shares.”

JPMorgan is also accused of promoting higher-cost mutual funds when cheaper ETFs were available, failing to disclose its financial incentives while recommending its portfolio management program, and favoring a foreign money market fund instead of prioritizing money market mutual funds that the bank managed.

The SEC says more than 1,500 customers will receive money from the settlement.

In all cases, JPMorgan has not admitted or denied any wrongdoing.

Generated Image: Midjourney