J.P. Morgan Securities to pay $35 million for engaging in fraudulent manipulative trading

Image source: JPMorgan Twitter account

J.P. Morgan Securities agreed to resolve allegations by the Securities and Exchange Commission (SEC) alleging that it engaged in fraudulent manipulative trading of U.S. Treasury securities for almost a year.

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According to the SEC, J.P. Morgan Securities submitted an offer of settlement in anticipation of the institution of an administrative proceeding against it. The New York-based broker-dealer, investment adviser, and a wholly-owned subsidiary of JPMorgan Chase & Company (NYSE: JPM) admitted the Commission’s allegations.

As part of the settlement, J.P. Morgan Securities consented to the SEC Order requiring it to pay a total of $35 million including disgorgement of $10 million and a civil penalty of $25 million.

The broker-dealer and investment adviser also agreed to cease-and-desist from committing or causing any future violations of federal securities laws.

SEC charges against J.P. Morgan Securities

In the SEC Order, the SEC alleged that certain traders at J.P. Morgan Securities trading des practice a manipulative trading scheme involving Treasury cash securities between April 2015 and 2016.