Fed Bars Former JPMorgan Subsidiary Executive Over Referral Hiring Scheme -- Update
February 22 2019 - 4:29PM
Dow Jones News
By Mengqi Sun
The Federal Reserve Board permanently barred a former managing
director of a JPMorgan Chase & Co. subsidiary from the banking
industry over his involvement in a referral hiring program that the
board says violated U.S. antibribery law.
Timothy Fletcher oversaw a program at JPMorgan's Asia-Pacific
region investment bank that offered internships or other employment
opportunities. Through the program, people referred by foreign
government officials and existing or prospective clients were
offered employment opportunities in exchange for winning business
for the company, according to a Feb. 15 order issued by the
board.
Mr. Fletcher was the head of the program from at least 2008 to
2013 and helped institutionalize it as a formal structure to
compete with other banks and win business, according to the Fed. He
was terminated from the bank in April 2015.
The program, known internally as the Sons and Daughters program,
earned the bank at least $35 million, according to the Justice
Department. The U.S. antibribery law prohibits companies and their
employees from giving anything of value to foreign officials in an
effort to improperly influence them.
JPMorgan reached settlements related to the scheme with the U.S.
Justice Department, the Securities and Exchange Commission and the
Fed, and it has agreed to pay about $264 million in fines and
penalties, the Fed said. JPMorgan also admitted that it violated
the Foreign Corrupt Practices Act.
The Fed in 2017 first sought a permanent ban against Mr.
Fletcher. It also sought a civil penalty of $500,000 from Mr.
Fletcher, which wasn't part of the settlement announced
Thursday.
A lawyer for Mr. Fletcher declined to comment. JPMorgan also
declined to comment.
Write to Mengqi Sun at mengqi.sun@wsj.com
(END) Dow Jones Newswires
February 22, 2019 16:14 ET (21:14 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
JP Morgan Chase (NYSE:JPM)
Historical Stock Chart
From Mar 2024 to Apr 2024
JP Morgan Chase (NYSE:JPM)
Historical Stock Chart
From Apr 2023 to Apr 2024