Member access

4-Traders Homepage  >  Shares  >  Nyse  >  JPMorgan Chase & Co.    JPM   US46625H1005

SummaryQuotesChart AnalysisNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 

JPMorgan Chase & Co. : Zamansky & Associates Announces Its Investigation of JP Morgan Chase over Sales of Its Proprietary Mutual Funds and Chase Strategic Portfolios

07/10/2012 | 06:15pm US/Eastern
Recommend:
0

Zamansky & Associates LLC is investigating JP Morgan Chase & Co. ("JP Morgan")(NYSE: JPM) over sales of proprietary mutual funds and Chase Strategic Portfolios for possible securities fraud and/or breaches of duties owed to bank and brokerage firm customers.

On July 3, 2012, The New York Times published an article entitled "Former Brokers Say JP Morgan Favored Selling Bank's Own Fund Over Others". This article reported that JP Morgan encouraged its financial advisers to favor JP Morgan's own products even when competitors had better-performing or cheaper options. With one crucial offering, JP Morgan exaggerated the returns of what it was selling in marketing materials, according to documents reviewed by The Times. Additionally, JP Morgan was ordered by arbitrators to pay $373 million to a competitor for favoring its products, despite an agreement it had to sell alternatives.

While investors have pulled money from stock funds, JP Morgan has gathered assets in its stock funds at a rapid rate, despite having only a small group of top-performing mutual funds. Over the last three years, roughly 42 percent of its funds failed to beat the average performance of funds that make similar investments, according to Morningstar, a fund researcher. "I was selling JP Morgan funds that often had weak performance records, and I was doing it for no other reason than to enrich the firm," said Geoffrey Tomes, who left JP Morgan last year. "I couldn't call myself objective."

The investigation also concerns sales of Chase Strategic Portfolios, an investment program offering managed portfolios that has grown to $20 billion in assets. JP Morgan charges investors management fees of 1.6%, in addition to the fees charged by mutual funds in the portfolios--other firms waive the duplicative fees. According to The New York Times, JP Morgan also provided investors with marketing materials containing misleading "theoretical" returns, which mask the true weaker performance of the Chase Strategic Portfolios.

If you JP Morgan bank or brokerage customer who invested in its mutual funds or the Chase Strategic Portfolios, please contact Jake Zamansky at (212) 742-1414 or jake@zamansky.com.

Zamansky & Associates is one of the leading law firms specializing in securities fraud and financial services class action litigation and arbitration.

Zamansky & Associates LLC
Jake Zamansky, 212-742-1414
jake@zamansky.com


© Business Wire 2012
Recommend :
0
React to this article
Latest news on JPMORGAN CHASE & CO.
4h ago JPMORGAN CHASE : Nigeria's 2024 Bond Yield Eases on JP Morgan Index Inclusion
5h agoDJUS Court Dismisses Aluminum Antitrust Cases
8h agoDJUS Court Dismisses Antitrust Cases Against Aluminum Traders
8h ago JPMORGAN CHASE : JPM cuts Beijing Ent to HK$84
2d ago JPMORGAN CHASE : State Officials Notified of JPMorgan Chase Data Breach
2d ago JPMORGAN CHASE : Big Name Bank Hacks Highlight the Importance of Regular Testing..
3d ago JPMORGAN CHASE : Unaware of any 'significant' cyber attack, says US banking grou..
3d ago JPMORGAN CHASE : JP Morgan lifts Mengniu Dairy to HK$43
3d ago JPMORGAN CHASE : JP Morgan lifts PetroChina to HK$12.5
3d ago JPMORGAN CHASE : JP Morgan lifts CNOOC to HK$16.5
Advertisement
Chart
Duration : Period :
JPMorgan Chase & Co. Technical Analysis Chart | JPM | US46625H1005 | 4-Traders
Income Statement Evolution
JPMorgan Chase _ Co. : Income Statement Evolution
More Financials
Dynamic quotes  
ON
| OFF