SEC Orders J.P. Morgan To Pay $125 Million Penalty Over Messaging Apps

Posted on December 24th, 2021 at 1:06 PM
SEC Orders J.P. Morgan To Pay $125 Million Penalty Over Messaging Apps

From the Desk of Jim Eccleston at Eccleston Law:

The Securities and Exchange Commission (SEC) has agreed to a $125 million settlement with J.P. Morgan Chase & Co. over its failure to preserve employee communications sent over email and messaging apps. 

The SEC alleged that J.P. Morgan failed to preserve employees’ messages between January 2018 and November 2020, which were typically delivered via text messaging applications, such as WhatsApp, or personal email. The firm failed to preserve written communications and its inadequate record slowed several SEC investigations, according to the agency. 

The Commodity Futures Trading Commission levied a $75 million penalty on J.P. Morgan for similar violations, including the failure to preserve written communications. According to the SEC’s order, J.P. Morgan confirmed the SEC’s findings and subsequently acknowledged that its conduct was unlawful. However, J.P. Morgan revised its policies and procedures prior to the SEC’s announcement by requiring additional training related to communication methods and altering the technology permitted for use by employees, according to the SEC. 

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

Related Attorneys: James J. Eccleston

Tags: eccleston, eccleston law, messaging apps, sec, jp morgan

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