visimoney
TL;DR:
JPMorgan Chase has agreed to pay an $18 million fine for forcing customers to sign confidential release agreements, preventing them from reporting illegal activity at the bank to the U.S. Securities and Exchange Commission (SEC). The SEC alleges that the agreements violated whistleblower protection rules, undermining investor protections and placing investors at risk. JPMorgan Chase has not admitted or denied the SEC’s findings but has agreed to be censured and to cease and desist from violating whistleblower protection rules.
JPMorgan Chase has been fined $18 million by the U.S. Securities and Exchange Commission (SEC) for actively working to stop customers from reporting illegal activity at the bank. The SEC alleges that JPMorgan routinely asked retail clients to sign confidential release agreements if they had received a credit or settlement from the bank of over $1,000. These agreements barred customers from acting as whistleblowers and reporting illegal activity to the SEC.
The SEC states that the inclusion of provisions that prevent individuals from contacting the SEC with evidence of wrongdoing is illegal. In a press release, the SEC said that JPMorgan’s actions undermined critical investor protections and put investors at risk. JPMorgan Chase has agreed to be censured and to cease and desist from violating whistleblower protection rules.
JPMorgan Chase has a history of paying fines for violations in the banking sector. According to the Violation Tracker database, the bank has paid over $38.99 billion in fines for violations since 2000.
