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J.P. Morgan Pays More Than $920 Million for Manipulative Trading in U.S. Treasuries

Levin Law | 10.26.2020
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J.P. Morgan Securities Continues to Face Regulatory Scrutiny

J.P. Morgan Securities LLC (“JPM”), a broker-dealer subsidiary of JPMorgan Chase & Co., admitted to charges for fraudulently engaging in manipulative trading. The Securities and Exchange Commission announced the charges, and J.P. Morgan securities agreed to the pay disgorgement of $10 million and a civil penalty of $25 million to settle the action. 

According to the SEC Press Release, J.P. Morgan Securities is facing additional charges from the U.S. Department of Justice and the U.S. Commodity Futures Trading Commission. Reaching settlements, J.P. Morgan Securities is paying over $920 million including fines, penalties, forfeiture, criminal restitution and others.  

The SEC order details how J.P. Morgan traders engaged in hundreds of manipulative trading “events” of U.S. Treasury cash securities in the secondary market between April 2015 and January 2016. The traders placed genuine orders while simultaneously placing multiple orders on the opposite side of the market in order to create a false appearance of buy or sale interest. The non-bona fide orders were designed solely to induce other market participants to trade against J.P. Morgan’s genuine orders. Subsequently, J.P. Morgan traders would then execute the bona fide orders after securing beneficial prices once artificially raising or depressing value with the non-bona fide orders. Then, the traders would typically cancel the non-bona fide orders. 

As a result, the manipulative trading scheme operated as a fraud and deceit to many other market participants while J.P. Morgan generated illicit profits. JPM’s actions are alleged to be a direct violation of Section 17(a)(3) of the Securities Act of 1933. The Securities Act and other regulations exist to protect the market’s integrity so that investors can participate in a market that is fair and transparent.

Contact Levin Law for a Free Case Evaluation

If you believe that you have suffered losses as a result of a brokerage firm’s, bank’s, or investment advisor’s manipulative, negligent, or otherwise illicit conduct, contact Levin Law for a free case evaluation.

About Levin Law

At Levin Law, we help recover funds for clients who have suffered significant financial losses through the negligence, incompetence, or deceit of brokerage firms or financial advisors. Our seasoned Miami securities & business litigation attorneys have the experience and knowledge needed to aggressively pursue your claims for the recovery of losses you have unnecessarily endured. With a solid track record of successfully recovering money for investors, you can be confident that your claim will be handled with the care and efficiency it deserves.

If you have suffered losses due to a broker’s misconduct or firm’s failure to supervise, contact Levin Law for a free case evaluation at (305) 402-9050. You can contact managing attorney Brian Levin at or on the firm’s website. Most cases are accepted on a contingency-fee basis, meaning you do not pay Levin Law’s attorney fees unless there is financial compensation recovered on your behalf.

Levin Law is a premier national securities and class action law firm. Brian Levin, Levin Law’s managing attorney, has obtained settlements and recoveries in excess of $100,000,000 in assets through arbitration and litigation for individual and institutional investors throughout the country and the rest of the world. Levin Law represents retirees, individual investors, high-net-worth investors, ultra-high-net-worth investors, institutions, family offices, trusts, publicly held companies, and others. 

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