An Investment Customer Filed a Complaint Alleging Fraud before Financial Industry Regulatory Authority (FINRA)
JP Morgan Securities (JPMS) made ‘certain errors and mistakes in the record keeping‘ declares a three member arbitration panel while adjudicating a customer’s complaint alleging fraud.
Trust” is the cornerstone of the Financial Industry
Brokerage firms are fined by Securities and Exchange Commission (SEC) when they violate rules involving thousands of customers and millions of dollars. Sadly, when individual customers are defrauded by brokerage firms, there is little hope that justice will ever be delivered.
Regulators (e.g., FINRA) use independent contractors to serve as arbitrators who may disregard incriminating proof to deliver a favorable sentence to the brokerage firms to secure their business interests.
A self-directed brokerage account customer filed a complaint against JP Morgan securities (JPMS; CRD#: 79) with the Financial Industry Regulatory Authority (FINRA). FINRA is a nongovernmental organization that writes and enforces rules for brokers and broker-dealers.
In the arbitration proceedings, the customer appeared Pro se (that is, the customer represented herself before the arbitration panel). She submitted an amended statement of claim wherein she made serious fraud allegations against JP Morgan securities, which are also mentioned in the publicly available arbitration award.
During the arbitration hearings, the customer provided tangible proof showing discrepancies in the investment account documents, unauthorized trading activity as seen in a non-discretionary self-investment account, realized losses added to the customer’s account, bookkeeping problems, misrepresentation regarding transfer of money that the customer withdrew out of her investment account, missing cost basis, and incomplete transfer of investment account to another brokerage firm. In response to all the proof, the three member arbitration panel gave JPMS a slap on the wrist and declared
“… Respondent made certain errors and mistakes in the record keeping related to Claimant’s account…”
It is noteworthy that SEC already fined JPMS many times for its bookkeeping and other violations. In one instance “…JPMS was ordered to cease and desist from future violations of those provisions, was censured, and was ordered to pay the $125 million penalty.”
More information can be found on the following link https://www.sec.gov/news/press-release/2021-262
The actions of JPMS raise serious doubts on its trust worthiness. Gurbir S. Grewal, Director of the SEC’s Division of Enforcement said, “Recordkeeping requirements are core to the Commission’s enforcement and examination programs and when firms fail to comply with them, as JPMorgan did, they directly undermine our ability to protect investors and preserve market integrity…” More information can be found on the following link https://www.sec.gov/news/press-release/2021-262
