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11-5-09 CROOK ALERT!! JP MORGAN SETTLES FOR $700 MILLION IN BRIBERY CASE
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.
11-5-09 NYTimes--JP Morgan Settles Bribery Case
- JP Morgan Settles Alabama Bribery Case
J. P. Morgan Securities will forfeit hundreds of millions of dollars in fees on derivatives contracts that it sold an Alabama county, under a settlement announced Wednesday that could offer hope to other governments staggering under similar deals.
11-5-09 BBC News--JP Morgan Settles Bribe Case
- BBC NEWS | Business | JP Morgan agrees $75m bribe fine
US banking giant JP Morgan agrees to pay a fine of $75m to settle charges that it bribed officials in Alabama.
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