JPMorgan Chase to pay $151M in penalties, restitution to settle disclosure lapses

JPMorgan Chase

Two affiliates of JPMorgan Chase have agreed to pay $151 million to settle five separate enforcement actions for making misleading disclosures, breaching fiduciary duties, and other failures related to investors.

JPMorgan Securities (JPMS) and JPMorgan Investment Management (JPMIM), both registered investment advisers, agreed to pay a total of $151 million in penalties and voluntary payments to investors for “misleading disclosures to investors, breach of fiduciary duty, prohibited joint transactions and principal trades, and failures to make recommendations in the best interest of customers,” The SEC said Thursday in a press release. JPMS is also registered as a broker-dealer with the SEC.

According to the agency, JPMS will return $90 million to 1,500 investors for making misleading disclosures regarding a private fund product, and pay a $10 million fine that will also be dispersed to affected investors. JPMorgan self-reported the issue to the SEC, after several investors had complained that their investment advisers had failed to sell certain shares in a timely manner, during which time the shares lost value, the SEC said in one of its order.

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