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11-5-09 CROOK ALERT!! JP MORGAN SETTLES FOR $700 MILLION IN BRIBERY CASE

Updated on November 5, 2009

JP Morgan Securities Settles Bribery Case for $700 Million

JP Morgan Securities agreed to settle for $700 million in a case brought by the SEC. Morgan was charged with paying more than $8 million in bribes to facilitate the approval of Jefferson County, Alabama, councilmen for the sale of bonds and trading in derivatives contracts.

Two former JP Morgan employees, one of whom had already served a prison sentence in a similar case in Philadelphia, were named in the SEC lawsuit.

The settlement may set a precedent for similar cases involving governmental units throughout the country. However, the element of bribery and a criminal conviction in the Jefferson County case which helped induce JP Morgan to settle may not be a factor in other cases.

The settlement provided for Morgan to stop trying to collect $647 million in fees from Jefferson County for the derivatives contracts, pay $50 million to Jefferson County and a $25 million fine to the SEC. JP Morgan neither admitted nor denied guilt in the settlement. A spokesman for the company said JP Morgan had discontinued trading in derivatives with state and local governments.

Former Jefferson County Commission president, Larry Langford was convicted of accepting $235,000 in gifts and cash in connection with the JP Morgan bribery scheme.


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    • fishskinfreak2008 profile image

      fishskinfreak2008 7 years ago from Fremont CA

      Not surprising. It's still the same old story on Wall Street

    • breakfastpop profile image

      breakfastpop 7 years ago

      Dear Ralph Deeds,

      Disgusting display of greed and corruption. Great hub!

    • Ralph Deeds profile image
      Author

      Ralph Deeds 7 years ago from Birmingham, Michigan

      Thanks!

    • drcrischasse profile image

      drcrischasse 7 years ago from NH/Foxboro

      It is a shame how integrity is almost gone in this country

    • Ralph Deeds profile image
      Author

      Ralph Deeds 7 years ago from Birmingham, Michigan

      Especially in Wall Street.

    • Sara Tonyn profile image

      Sara Tonyn 7 years ago from Ohio, the Buckeye State

      Another important hub, Ralph. Great work. Too bad there's so much corruption like this to write about. But at least we have people like you to call our attention to it, so thanks much for doing that! :)

    • Ralph Deeds profile image
      Author

      Ralph Deeds 7 years ago from Birmingham, Michigan

      Sara, thanks for your kind comment!

    • profile image

      ColdWarBaby 7 years ago

      "It is a shame how integrity is almost gone in this country"

      Almost?

      Keep up the good work Ralph. The facts are there for anyone not in denial.

    • Ralph Deeds profile image
      Author

      Ralph Deeds 7 years ago from Birmingham, Michigan

      Thanks, CWB. I made up my mind a long time ago not to do business with Wall Street banksters. I only wish I could as easily avoid being ripped off by drug companies.

    • profile image

      ColdWarBaby 7 years ago

      It ain't gonna be easy Ralph, but I think there's going to be a lot of decentralization going on pretty soon. This system is simply not sustainable.

      It's time for a new subculture. We almost did it in the sixties but we fell asleep at the wheel, crashed and burned. If enough people just stop playing the game, we may end up with a few pockets of humanity here and there.

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