JPMorgan to pay $264M to settle foreign corruption charges

JPMorgan Chase will pay $264 million to settle charges that a Hong Kong-based subsidiary hired more than 100 interns and full-time employees at the request of government workers, winning lucrative contracts in exchange.

{mosads}The bank will pay $130 million to settle charges from the Securities and Exchange Commissionfor violating the Foreign Corrupt Practices Act, the SEC announced Thursday. The bank was also charged with violating SEC anti-bribery, record-keeping and internal control rules. 

The program in question brought in roughly $100 million in revenue for JPMorgan, the SEC said.

“JPMorgan engaged in a systematic bribery scheme by hiring children of government officials and other favored referrals who were typically unqualified for the positions on their own merit,” said Andrew J. Ceresney, director of the SEC Enforcement Division.  

“JPMorgan employees knew the firm was potentially violating the FCPA yet persisted with the improper hiring program because the business rewards and new deals were deemed too lucrative.” 

JPMorgan will also pay $72 million to the Department of Justice and $61.9 million to the Federal Reserve Board of Governors.

“The so-called Sons and Daughters Program was nothing more than bribery by another name,” said Assistant Attorney General Leslie Caldwell. “Awarding prestigious employment opportunities to unqualified individuals in order to influence government officials is corruption, plain and simple.”