Question

Go to the SEC website (www.sec.gov).

a.) Click on the “Enforcement” tab and then on “Accounting and Auditing.” Determine how many AAERs were issued in the current year:

b.) Open AAER 3824. Briefly summarize the charges against JP Morgan Chase & Co. Was the company fined? If so, how much? Did the company pay disgorgement? If so, how much?:

Answer 1

a). 5 AAERs were issued in the current year.

b) Charges against JP Morgan Chase & Co.

• Anti-Bribery Violations: By providing valuable internships and employment to relatives and friends of foreign government officials in order to assist JPMorgan in retaining and obtaining business.
• Books and Records Violation: JPMorgan was required to make and keep books, records, and accounts, which, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the issuer. JPMorgan APAC personnel submitted, reviewed, and approved inaccurate compliance questionnaires containing false and incomplete information. JPMorgan’s internal records also inaccurately reflected the true number of client Referral Hires in the APAC region by taking steps to withhold certain headcount information relating to Referral Hires.
• Internal Control Violation: JPMorgan violated the internal accounting controls provisions of the FCPA in conjunction with certain Referral Hires. JPMorgan failed to devise and maintain an effective system of internal accounting controls.

Yes, JPMorgan was fined a $72,000,000 criminal fine.

Yes, JPMorgan paid disgorgement of $105,507,668 and prejudgment interest of $25,083,737, for a total payment of $130,591,405.