JPMorgan Chase To Pay $250,000 for Defaming Former Employee As Regulator Orders Bank To Eliminate Series of Allegations
The Financial Industry Regulatory Authority (FINRA) is ordering JPMorgan Chase to pay hundreds of thousands of dollars in damages to a former employee who accused the bank of defamation.
Former JPMorgan Securities (JPMS) financial advisor Michael C. Nolan says the trillion-dollar lender damaged his reputation in a Form U5 filing to FINRA after he left the bank in 2022.
FINRA requires member organizations to file a Form U5 to explain why individuals left the firm.
In its Form U5, JPMorgan alleged that Nolan violated company policy and shared sensitive information with a client.
“Registered Representative is under internal review for allegedly: sharing material non-public information with a client; failing to properly disclose his personal affiliation with an outside business interest prior to requesting information from firm resources regarding the outside interest; and, violating the firm’s policy prohibiting the use of unapproved electronic communication channels for business communications.”
Nolan, who worked at JPMorgan for 41 years, denies the allegations and lodged a dispute claim citing FINRA Rule 1122, which prohibits financial institutions from filing misleading information regarding a registered adviser.
After over a year of arbitration, FINRA is awarding Nolan $250,000 in compensatory damages and ordering JPMorgan to expunge all defamatory language and responses on his Form U5.
“[JPMorgan Chase] is liable for and shall pay to Claimant the sum of $250,000.00 in compensatory damages, which includes the claim for advancement/indemnification.”
JPMorgan Chase has shelled out $522.448 million in total fines since 2000 levied by US regulators, enforcement agencies and lawsuits related to employment offenses, according to Violation Tracker, a comprehensive corporate misconduct database.
The bank generated $49.6 billion in profit last year.
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