April 15, 2008
SEC Charges Defendants with Defrauding JP Morgan Chase Through Sham Finder Fees
On April 15, 2008, the SEC filed a civil injunctive action in the United States District Court for the Eastern District of New York charging 6 defendants with engaging in a scheme to defraud JP Morgan Chase Bank (Chase)through the payment of sham "finder" fees in connection with a series of "stock loan" transactions. The defendants include a former stock loan trader employed at Chase, three so-called "finders" with whom he schemed and the two entities through which they perpetrated the fraud. The SEC alleges that the defendants conspired to misappropriate Chase's lending profits on a series of April 2003 stock loans made by Chase to Dresdner Kleinwort Wasserstein Securities LLC ("DKW"), and in doing so pocketed $1.2 million from their unlawful scheme.
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Tracked on Sep 21, 2009 10:53:56 PM