According to Bloomberg news today, two whistleblowers are about to reap a $61 million reward from the Securities and Exchange Commission for assisting the agency in proving that JP Morgan & Chase failed to disclose to wealthy clients that it was directing them to investments that were most profitable for JP Morgan. SEC letters issued Wednesday telling six whistleblower applicants of a preliminary decision. It said two would share almost one quarter of the record settlement which the SEC had reached with the bank in December of 2015.JP Morgan has agreed to pay $307 million.
Under the SEC whistleblower program, the names of whistleblowers are not revealed. Part of the payment will go to the Commodity Futures Trading Commission (CFTC) which operates a separate whistleblower program. The CFTC has not made any whistleblower award determination in the JO MOrgan case, which means the whistleblower may receive even more moneys as a CFTC reward.
JP Morgan admitted disclosure failures from 2008-2013 relating to two units-its securities division and its nationally chartered bank. The reward is expected to be the largest to date awarded to a SEC whistleblower.
Jeffrey Newman represents whistleblowers but not those in this case.