JP Morgan Securities (JPMS) made ‘certain errors and mistakes in the record keeping‘ involving a customer, declares a three member arbitration panel. A self-directed brokerage account customer recently filed a complaint against JP Morgan securities (JPMS; CRD#: 79) with the Financial Industry Regulatory Authority (FINRA). FINRA is a nongovernmental organization that writes and enforces rules for brokers and broker-dealers.
In the arbitration proceedings, the customer appeared Pro se (the customer represented herself before the arbitration panel). She submitted an amended statement of claim wherein she made serious fraud allegations against the JP Morgan securities (Respondent), which are also mentioned in the publicly available arbitration award.
During the arbitration hearings, in response to the tangible proof provided by the customer regarding the discrepancies in her account documents, unauthorized trading activity as seen in a non-discretionary self-investment account, book keeping problems, misrepresentation regarding transfer of money out of her investment account, and missing cost basis for many securities that were transferred out to another brokerage firm, the three member arbitration panel gave JPMS a slap on the wrist and wrote in part
“… Respondent made certain errors and mistakes in the record keeping related to Claimant’s account…”
It is noteworthy that SEC already fined JPMS many times for its bookkeeping and other violations. In one instance “…JPMS was ordered to cease and desist from future violations of those provisions, was censured, and was ordered to pay the $125 million penalty.”
More information can be found on the following link https://www.sec.gov/news/press-release/2021-262
The actions of JPMS raise serious doubts on its trust worthiness. Gurbir S. Grewal, Director of the SEC’s Division of Enforcement said, “Recordkeeping requirements are core to the Commission’s enforcement and examination programs and when firms fail to comply with them, as JPMorgan did, they directly undermine our ability to protect investors and preserve market integrity…” More information can be found on the following link https://www.sec.gov/news/press-release/2021-262
2 Responses