Monday, February 11, 2013

SEC Solicits JPMorgan Chase Whistleblower Award Claims

The SEC has published a notice allowing whistleblowers to come forward with claims that information they provided to the government helped lead to the SEC’s $294 million settlement with JPMorgan Chase.  The SEC will review any claims and can award whistleblowers between 10% and 30% of the amount collected.  The SEC obtained the settlement in a suit alleging that JPMorgan Chase misled investors about mortgage-backed securities, causing investors to lose at least $37 million as a result of undisclosed problems with the underlying mortgages.  The settlement also included allegations that Bear Stearns, which JPMorgan Chase purchased in 2008, failed to disclose to mortgage-backed securities investors that the company had kept most of the proceeds from defective mortgages that were sold back to their originators.  Whistleblowers must file claims with the SEC before May 9th.

Read the entire article, “SEC Invites Whistleblower Claims in JPM Mortgage Settlement"

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