Investor Claims Against JP Morgan Chase
Did you invest with JP Morgan Chase and suffer substantial financial losses?
J.P. Morgan Chase is the third largest financial institution in the United States and one
of the oldest in the world. Formed in 2000 when JP Morgan & Co. merged
with Chase Manhattan Corporation, JP Morgan Chase serves corporations,
hedge funds, governments, high-net-worth individuals and institutional
investors in 100 countries. In 2008, the company purchased struggling
Bear Sterns and integrated the previous financial giant into the new J.P.
Morgan Securities firm.
A securities brokerage firm licensed by FINRA, J.P. Morgan Chase has a
legal duty to supervise its brokers and its brokers' recommendations
to clients to ensure compliance with and prevent violations of the rules
of the security industry. When an individual broker is negligent or acts
in an unlawful manner against the interests of the client and that client
suffers damages as a result of such wrongdoing, the firm may be held liable
for the investor's losses.
Bear, Sterns & Co., Inc.
Up until the recent financial crisis, Bear, Sterns & Co., Inc. was
one of the world's largest financial firms providing investment banking,
securities trading, and brokerage services. The firm was headquartered
in New York City with offices throughout the United States as well as
in Europe, Asia, and South America. Founded in 1923, Bear Stearns was
integrated with J.P. Morgan Chase in 2008. In January 2010, Bear Stearns'
name was officially changed to J.P. Morgan Securities.
JP Morgan Chase Fraud and Broker Misconduct
JP Morgan Chase and its registered brokers are required to abide by securities
industry regulations. When they do not, they face fines and potential
investor claims and consumer class actions. JP Morgan and Chase have been
fined in the past for violating certain SEC and FINRA regulations.
In 2003, JP Morgan was
fined for sharing in profits from Hot IPOs. The illegal profit sharing was conducted at Hambrecht & Quist LLC,
later acquired by JP Morgan. JP Morgan was required to pay $6 million
for their unlawful conduct. In 2006, Chase Investment Services was
fined $500,000 for failure to supervise violations. Specifically, the failed supervision was in regard to certain 529 college
In 2011, Meyer Wilson reported that
JP Morgan was required to pay $153.6 million on a securities fraud charge. The SEC investigated and accused JP Morgan
Chase's Wall Street division for selling mortgage-backed securities
that had little chance of succeeding. These securities were sold just
prior to the U.S. housing market crash of '07/'08.
Common Investment Abuses
If you invested your money with JP Morgan Chase or one of its registered
brokers and you lost a substantial amount of money, about $75,000 or more,
this could have been caused by one of these common types of investment abuses:
Breach of Fiduciary Duty – When you invest your money with a firm or a broker, that party
has a fiduciary duty to uphold. Essentially, this means that your broker
and brokerage firm agree to act in your best interests and not their own.
Failure to Supervise – This type of negligence is a relatively common type of investment misconduct.
Brokers and firms must adequately manage their investors' accounts
to ensure that best practices are being followed.
Misrepresentation – Brokerage firms must disclose all information that is necessary to their
investors making informed decisions about their investments. This includes
being truthful about investment risks.
Ponzi Schemes – These usually make headlines, such as Bernie Madoff's Ponzi scheme.
Essentially, fraudsters who run Ponzi schemes pay investors "returns"
with money from investors, rather than actual earned revenue.
Unsuitability – Brokers must manage their investors' portfolios and only recommend
investments that are suitable for their financial situation. Brokers can
be penalized when they recommend unsuitable investments that cause their
investors to lose money.
Recover Your Losses Caused by JP Morgan / Chase
Meyer Wilson can conduct aggressive, effective claims against brokerage
firms like JP Morgan/Chase because we have considerable resources and
skills that come from exclusively focusing on securities fraud and arbitration.
Our attorneys have over five decades of collective experience with developing
precise, strategic cases on behalf of our clients.
Our firm has reclaimed hundreds of millions of dollars in state and federal
courts and in arbitration through FINRA, AAA, and privately. Our investment
loss lawyers also represent international clients in claims against U.S.
investment firms. No matter how established or heavily-resourced a brokerage
firm is, Meyer Wilson is prepared to pursue the interests of our clients
with excellence, precision, and effective strategies.
Contact an investment fraud attorney at our firm today for a
free case evaluation to learn if you might have an investor claim against JP Morgan Chase or
one of its registered brokers.