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 government officials.
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.”