J.P. Morgan Securities Settles $18 Million SEC Case Over Whistleblower Violations

Posted on March 25th, 2024 at 3:31 PM
J.P. Morgan Securities Settles $18 Million SEC Case Over Whistleblower Violations

From the Desk of Jim Eccleston at Eccleston Law

J.P. Morgan Securities faced a significant penalty as it settled charges brought by the Securities and Exchange Commission (SEC) regarding actions that hindered clients from reporting potential securities law violations.

Without admitting guilt, the firm agreed to a censure, pledged to cease and desist from violating whistleblower protection rules, and agreed to pay an $18 million civil penalty. The SEC's investigation revealed that from March 2020 to July 2023, the firm routinely asked retail clients to sign confidential release agreements if they received credits or settlements exceeding $1,000.

As reported by ThinkAdvisor, the agreements compelled clients to maintain confidentiality regarding the settlement and related account information, with at least 362 clients signing such releases since 2020. Despite allowing clients to respond to SEC inquiries, the agreements prohibited them from contacting the SEC voluntarily. This action violated Rule 21F-17(a) of the Securities Exchange Act of 1934, which safeguards whistleblowers from impediments to communicating directly with SEC staff about potential securities law breaches.

 Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: Eccleston, Eccleston Law

Return to Archive

TESTIMONIALS

Previous
Next

That is just fantastic! Thank you very much!

Julie N.

LATEST NEWS AND ARTICLES

January 9, 2026
FINRA Sanctions Former Wells Fargo Advisor for Profile Falsification and Unauthorized Trading

The Financial Industry Regulatory Authority (FINRA) disciplined former Wells Fargo Advisors broker James E. Holmes III for misconduct tied to his falsifying customer information and unauthorized trading.

January 8, 2026
Georgia Investment Advisor Pleads Guilty to Ponzi Scheme

A former Georgia investment adviser has pleaded guilty to wire fraud after federal prosecutors accused his firm of operating a multiyear Ponzi scheme that cost investors millions of dollars, as reported by Financial Advisor News.

January 7, 2026
FINRA Releases 2026 Regulatory Oversight Report, Spotlighting Private Placement Compliance Risks

The Financial Industry Regulatory Authority (FINRA) released its 2026 Annual Regulatory Oversight Report, responding directly to member feedback and reinforcing its stated mission to protect investors and promote market integrity.