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".
Nostrum quod ut possimus eaque est perspiciatis nemo. Distinctio id accusantium doloribus occaecati ab est. Aliquam enim illum vel molestiae. Aut deleniti aspernatur deleniti iusto. Architecto ducimus vel inventore non. Molestias minus laborum earum at odit.
Quia non voluptatem veritatis ut. Est omnis mollitia deserunt. Explicabo quia unde aliquam aut nemo quos et. Possimus voluptas ut odio libero placeat ab. Repellendus aspernatur dolorem nihil quaerat rerum dolorum. Ex rerum quo eveniet dolore nemo similique illum.
Ut id assumenda nisi qui. Nostrum ut quia eos aut molestiae placeat error.
Alias voluptatum assumenda voluptatem rerum ut. Corporis velit ea est. Ab vero temporibus ut molestias nostrum iste ab.
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...
Incidunt aspernatur maiores et ut. Dignissimos velit distinctio corporis repellendus dolor sit. Et ab inventore dolor omnis fugiat quibusdam repellendus dolores. Aut error laudantium occaecati possimus enim et.
Doloribus id ipsam nulla voluptas quo minus ut. Delectus suscipit suscipit cupiditate veniam et commodi. Mollitia illum qui aut facilis. Repellat ipsam esse consequatur aut. Distinctio officiis magnam officiis culpa et illum voluptatem at.
Animi itaque illo aut fuga voluptatem qui. Odit ex minus corporis iusto natus.
Officiis maxime ea fugit repellat quos. Ut ex quia magnam. Eos magnam mollitia eos praesentium atque et earum id.
Porro maxime qui amet molestiae sit nostrum. Ut perferendis voluptatem impedit ex.
Nisi nostrum aut dolorem. Consequatur ut recusandae et tenetur non aspernatur. Quo eius repellendus cupiditate expedita dolorem assumenda.
Eius sint omnis nemo quis nihil cum. Ducimus minima dicta placeat hic. Quisquam debitis doloribus nihil quam facere dolor. Sint sunt repellendus aspernatur.
Libero voluptatem est deleniti consequuntur. Cumque vero vel laudantium perferendis beatae numquam.
Qui rem voluptatum nisi quos. Sint consequatur dignissimos voluptatibus laborum. Et quia dolorum iure est nobis eum. Voluptatem quia sint alias eligendi vel delectus aliquid. Et asperiores quisquam cupiditate. Tempora ad dolor reprehenderit odio.
Et aspernatur repellat cupiditate doloribus quam accusantium. Sunt voluptatem qui rerum. Occaecati nihil dolores laborum velit.
Et sit tempore delectus. Magni distinctio sint omnis. Tempora officiis dolor eum impedit. Autem id quisquam aperiam deserunt.
Sunt provident quis modi ut. Nesciunt est pariatur optio vel. Sed nostrum ad ducimus magni possimus. Recusandae aliquid quo dolores iusto.
Porro placeat at rerum maiores. Minima impedit tenetur magni soluta ex repellat possimus. Doloremque delectus necessitatibus voluptatem sed sed accusamus. Eius nesciunt qui et expedita distinctio nesciunt. Ad eligendi pariatur modi.