A scheme to bribe Jefferson County, Alabama officials to obtain municipal bond offerings and swap agreement transactions will cost JP Morgan Securities $722m, the Securities and Exchange Commission announced Wednesday.
Without admitting or denying the allegations, Morgan will pay the county $50m and the SEC a $25m fine, and will forfeit more than $647m in claimed termination fees.
The SEC separately sued two former Morgan managing directors, Charles LeCroy and Douglas MacFaddin, in Birmingham federal court, where the action is pending, for their roles in the alleged scheme.
Morgan and the executives allegedly paid over $8m to individuals who owned or worked at local broker-dealers but performed no known services on the transactions. These local brokers were close friends of some county commissioners who voted to select Morgan as the managing underwriter of the bond offerings and Morgan's affiliated bank as the swap provider for the transactions.
Morgan allegedly did not disclose
This article is only available in full to Complinet Complete North America Subscribers who are logged in.
Please log in to see if you can view this content.
