JP Morgan Fined $1.1 Million for Failing to Tell FINRA About 89 Broker Misconduct Allegations

Attorney Advising Disclaimer

FINRA censured and fined JP Morgan Securities $1.1 million for its failure to timely disclose 89 allegations of misconduct or internal reviews against registered representatives from 2012-2018.

FINRA wrote that JP Morgan's failure to timely disclose allegations of misconduct and reviews involving the firm's brokers and financial advisers "prevented or delayed regulators, other member firms, and the public from learning about those events and, in certain instances, prevented FINRA from pursuing potential disciplinary action."

For instance, JP Morgan purportedly failed to disclose reviews and allegations that 13 of its representatives misappropriated funds from customers, and that five registered representatives misappropriated company funds.

Perhaps equally as troubling, the ramifications of JP Morgan's misconduct in failing to disclose allegations or reviews of brokers may extend beyond JP Morgan itself.

FINRA found that 36 of the reps under review at JP Morgan actually became associated with other FINRA-member firms before JP Morgan finally disclosed the allegations or investigations. In some cases, JP Morgan's purportedly illicit disclosure delays prevented FINRA from pursuing disciplinary action against as many as 30 former JP Morgan representatives due to disciplinary-related time limits of jurisdiction.

If you have invested with a stockbroker or investment adviser at JP Morgan—or who previously worked at JP Morgan—whose undisclosed misconduct has proven harmful to your investments or interests, please call an experienced FINRA arbitration attorney at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.

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