JPMorgan To Lay Out $151 Million In Penalties, Investor Payments After SEC Flags 'Various Law Violations' (UPDATED)

Editor’s note: This story has been updated to make clear in the headline that JPMorgan’s $151 million settlement with the SEC encompasses both penalties and payments to investors.

The U.S. Securities and Exchange Commission (SEC) announced Thursday that it has charged two affiliates of JPMorgan Chase & Co. JPM in five separate enforcement actions resulting in penalties and voluntary payments to investors of more than $151 million. 

The Details: The SEC charged J.P. Morgan Securities LLC and J.P. Morgan Investment Management Inc. in five separate enforcement actions. Among the violations the agency flagged: misleading disclosures to investors, breach of fiduciary duty, prohibited joint transactions and principal trades, and failures to make recommendations in the best interest of customers. 

The JPMorgan affiliates agreed to pay more than $151 million in combined civil penalties and voluntary payments to investors to resolve the actions. The firm did not admit nor deny the findings in the SEC's orders. 

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"JPMorgan's conduct across multiple business lines violated various laws designed to protect investors from the risks of self-dealing and conflicts of interest," said Sanjay Wadhwa, acting director of the SEC's Division of Enforcement. 

"With today's settlements, which include multiple self-reports and large voluntary payments to harmed investors, JP Morgan is being held accountable for its regulatory failures," Wadhwa added. 

One of the enforcement actions against J.P. Morgan Securities found that the firm made misleading disclosures to customers who invested in its Conduit private funds products which resulted in complaints from clients after the value of certain shares declined significantly. 

As part of the resolution, J.P. Morgan Securities agreed to make a voluntary payment of $90 million to more than 1,500 Conduit investor accounts. It also agreed to pay a civil penalty of $10 million, which will also be distributed to Conduit investors. 

Price Action: According to Benzinga Pro, JPMorgan shares are up 0.09 % at $222.13 at the time of publication Friday.

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