The Strategist

Several JPMorgan employees fired for illegally obtaining government support

09/11/2020 - 03:51

JPMorgan Chase bank fired several employees who arranged for themselves and their clients to illegally receive financial aid from the state intended to help the victims of the pandemic under the Economic Injury Disaster Loan (EIDL) program. This was reported by an informed source to Bloomberg.

Beyond My Ken
Beyond My Ken
According to the source, suspicious amounts of money were found on the accounts of these employees. The bank sent a letter to its employees, in which it informed about the identification of potentially illegal actions on the part of the staff, but did not specify what it was about. There it was said about identifying actions that do not comply with his "business and ethical principles, and may even be illegal."

"This includes cases of misuse by clients of loans under the PPP (Paycheck Protection Program) program, unemployment benefits and other government programs," – said the bank in a statement. It also noted that some employees "did not live up to expectations."

The US Small Business Administration (SBA) program has expanded significantly after the coronavirus pandemic disrupted businesses across the country, leaving many small businesses in need of financial assistance. Unlike the Paycheck Protection Program, loans and grants under this program come directly from the SBA.

The bank revealed illegal actions on the part of employees as a result of a larger-scale audit of personal accounts to which funds were transferred as part of financial assistance to businesses.

The Financial Times, citing a source, said the individuals who received loans under the EIDL were not JPMorgan employees, but the illegal actions were a violation of the bank's rules of conduct, and several employees were fired due to improper filing of financial aid applications.


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