WASHINGTON (Legal Newsline) – The U.S. Department of Justice
announced Nov. 17 that JPMorgan Securities (Asia Pacific) Limited (JPMorgan
APAC), a Hong Kong-based subsidiary of multinational bank JPMorgan Chase &
Co. (JPMC), will pay $72 million after allegations of gaining advantages for
bank deals by awarding important jobs to relatives and friends of Chinese
The department’s announcement was made
by Assistant Attorney General Leslie R. Caldwell of the Criminal Division, U.S.
attorney Robert L. Capers of the Eastern District of New York and Assistant Director
in Charge William F. Sweeney Jr. of the FBI’s New York Field Office.
“The so-called Sons and Daughters Program was nothing more
than bribery by another name,” said Caldwell.
“Awarding prestigious employment opportunities to unqualified individuals in
order to influence government officials is corruption, plain and simple.
This case demonstrates the Criminal Division’s commitment to uncovering
corruption no matter the form of the scheme.”
JPMorgan APAC purportedly netted more than $35
million in profits due to the corrupt scheme. In addition to the monetary fine
it will pay, JPMorgan APAC will cooperate with any ongoing parts of the case
and take steps to enhance its compliance program.
“Creating a barter system in
which jobs are awarded to applicants in exchange for lucrative business deals
is a corrupt scheme in and of itself,” said Sweeney. “But when foreign officials are among those involved in the
bribe, the international free market system and our national security are among
the major threats we face.”