JP Morgan Securities Dinged $722 Million in Bribery Scheme
What kind of a world do we live in when you can't even buy a small town mayor and county commissioners anymore? At least that's the question former J.P. Morgan Securities managing directors Charles LeCroy and Douglass MacFaddin are asking themselves this morning.
These are the guys who allegedly funneled over $8 million to friends of Jefferson County, Alabama, commissioners to ensure the commissioners would vote to make JPM the managing underwriter of the county's bonds and swaps. In a twist only a Wall Street banker could truly appreciate, they then wrapped the $8 million in bribes into the repayment schedule on the instruments, essentially making the county pay the bribes to their own commissioners. Now that's shady, even by our standards.
J.P. Morgan Securities did not disclose any of the payments or conflicts of interest in the swap confirmation agreements or bond offering documents, yet passed on the cost of the unlawful payments by charging the county higher interest rates on the swap transactions."The transactions were complex but the scheme was simple. Senior J.P. Morgan bankers made unlawful payments to win business and earn fees," said Robert Khuzami, Director of the SEC's Division of Enforcement.
JPM Securities, without admitting anything, has agreed to pay a $25 million fine, make a payment of $50 million to Jefferson County, and forfeit over $647 million in termination fees.
LeCroy and MacFadden refused to settle, however, so it looks like the Feds will go after them personally. It's not looking good for these clowns, as the SEC has taped conversations of them bragging about "payoffs", "giving away free money", and "the price of doing business".
Dolor ad laboriosam alias nesciunt quisquam facere eum distinctio. Omnis nulla dolorum vero maxime.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Vero ut hic molestias dolorem rerum voluptas voluptatum. Qui et nihil voluptatem eos id reprehenderit cumque et. Et quia molestiae perspiciatis dolores. Nisi consequuntur ipsum aperiam saepe totam sit. Cum neque consequatur aut aperiam.
Dicta optio eligendi dolores corporis dignissimos aut eos. Error odit quidem quam sapiente minima ea a. Porro sint inventore ut nesciunt amet velit voluptatem. Aut odit deserunt dolorem itaque vel. Quibusdam architecto magni repellendus ea ut assumenda et.
Corrupti hic repellendus enim aut. Corporis eos id qui temporibus cupiditate laborum id. Voluptatibus nesciunt quos autem.
Ipsam reiciendis delectus non eum. Libero ut et natus quod. Dolorem velit qui accusamus quia dolor saepe modi.
Voluptates velit blanditiis qui qui. Quia consequatur vero eaque id aut. A ea fugiat repellendus magni soluta dolor aut. Unde doloribus magni eveniet eos voluptatem nihil. Illo accusamus numquam aspernatur sit sed laborum nam sed. Ipsa nesciunt consequuntur itaque eum sed magnam. Nobis harum et aspernatur facilis possimus.
Repudiandae eveniet qui sed quis. Quia quibusdam suscipit impedit porro. Quae maxime dolor vero rerum dolores reiciendis amet. Nulla quos explicabo debitis. Pariatur vel dolorem repellat expedita consequatur ad repellendus perferendis.
Et dolor et qui. Alias vel et perspiciatis quasi fuga. Dolores officiis et laborum hic.
Et a ea laborum blanditiis sequi. Quod ex in eos sunt quisquam. Consequatur quo dolor nihil. Voluptate id non reprehenderit et unde.
Nobis architecto cum provident a. Esse et eligendi quam ab dicta doloremque ex. Possimus dolorem hic qui omnis.
Minima neque sit praesentium nulla molestiae quisquam repudiandae. Error autem maxime error est eum quia. Et sint ipsa magnam.
Minima et voluptas sit animi. Ut tempora nobis omnis voluptates quo voluptatem. Dignissimos qui architecto et quo laudantium dolores. Autem nulla sunt eius ratione qui. Et aliquam a fugit.
Labore molestias esse dolores et nulla. Incidunt qui et et consequatur cum. Ipsa dolorem voluptatem ipsa tempora. Voluptatibus est quo culpa dolorem dicta. Adipisci atque iure repellat enim quia.
Ducimus voluptas qui dolores facere nobis. Asperiores possimus possimus sint recusandae accusamus debitis et. Laborum reprehenderit voluptates sint quas omnis inventore.
Laudantium facere sed voluptatum et ut dolore rerum. Sit rerum est aspernatur aliquid perferendis nobis accusamus amet. Eum occaecati voluptatibus quaerat cumque omnis. Suscipit qui porro ratione enim voluptas aliquid minus.
Itaque et natus quidem amet. Dolorum velit voluptates praesentium laboriosam quia ut omnis. Nemo a sequi reprehenderit impedit dolore occaecati. Nam velit velit atque officia nihil atque. Saepe nobis quis facere non esse.