United States: JP Morgan Pays $264 Million for China Jobs-For-Brats Scheme
Investment bank JPMorgan Chase reached a settlement with the US Securities and Exchange Commission (SEC) on Thursday to pay US$ 264 million over its practice of giving jobs to the family members of Chinese officials and lawmakers.
The settlement marks the end of a three-year investigation into allegations the bank had violated the US Foreign Corrupt Practices Act.
Between 2006 and 2013, JPMorgan’s Hong Kong based subsidiary, JPMorgan Securities (Asia Pacific) Limited hired nearly 100 people referred to them by Chinese officials under a program called "Sons and Daughters," the SEC said in a statement.
While the bank’s regular potential hires were subject to an intensive, competitive process, the "Sons and Daughters" sailed through with no contest.
JP Morgan was able to attract $100 million worth of business through the hiring practice, the SEC said.
The SEC’s statement did not name any JPMorgan employees as complicit in the scheme and authorities have not sought criminal charges, the South China Morning Post reported.