By Katy Burne

The Federal Reserve said it was seeking to fine two former J.P. Morgan Chase & Co. managing directors and ban them from working in the banking industry for their involvement in a corrupt hiring program that led the bank to pay $264 million in fines.

The actions against the two individuals, Fang Fang and Timothy Fletcher, come after the bank reached separate settlements with the Justice Department, the Securities and Exchange Commission, and the Fed, paying a total of more than $264 million, including $61.9 million to the central bank over lapses in its hiring and antibribery controls.

The Fed said it would seek to fine Mr. Fang $1 million and Mr. Fletcher $500,000. It alleged that they offered internships and other jobs at the investment bank in Asia in exchange for winning business from prospective clients and foreign officials.

Those actions, which it said dated from January 2008 to April 2013 in both cases, were prohibited under bank policies and U.S. law. The Foreign Corrupt Practices Act bars employees from offering, directly or indirectly, anything of value to foreign officials or commercial entities to win business.

A spokesman for J.P. Morgan declined to comment.

Mr. Fang was managing director and head of J.P. Morgan's China investment-banking unit from 2007 until his resignation in June 2014. He also managed the referral hiring program, the Fed said.

Mr. Fletcher was head of the junior resources management group at the firm in Asia from 2008, putting him in charge of administering the hiring program for the Asia Pacific region. His employment was terminated in April 2015.

"The misconduct described herein involves personal dishonesty or a willful or continuing disregard for the safety and soundness of the firm" on the part of the executives, the Fed said in a notice.

Last year, the Journal reported that some of the individuals hired in exchange for favor under the program at J.P. Morgan lacked the proper qualifications. One candidate was described in an email as "the worst [business analyst] candidate they had ever see[n]." Another had a "napping habit."

Write to Katy Burne at katy.burne@wsj.com

(END) Dow Jones Newswires

March 10, 2017 15:47 ET (20:47 GMT)

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