According to recent Yahoo Finance article, JP Morgan Chase & Co. has agreed to pay $153.6 million to settle civil fraud charges brought by the Securities & Exchange Commission (SEC). Click here for the SEC release.
The commission alleged the company mislead buyers as to the risk associated with complex mortgage investments just before the housing market collapsed. Notable in the settlement was the provision that investors who were harmed will receive all of their money back. Also, the firm agreed to change the way it evaluates mortgage related investments.
As is typically the case in such regulatory settlements, the firm neither admitted nor denied wrongdoing under the settlement.
This is just the latest in a series of well-publicize settlements involving mortgage backed securities related fraud. Previously, Goldman Sachs agreed to pay approximately $550 million to settle a claim involving similar allegations.
If you have lose money as a result of a mortgage related investment, you may have a claim for damages. Please contact our office for a free case evaluation. Thank you.