Log in
Login
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

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

Delayed Quote. Delayed  - 05/31 10:00:14 pm
65.27 USD   -0.24%
05/31DJCITIGROUP : Global Financial Institutions Are in Retreat -- WSJ
05/30DJWHEN BIGGER ISN : Banks Retreat From Global Ambitions
05/29 JPMORGAN CHASE : Aramco may appoint JPMorgan, HSBC for bond sale
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

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

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/11/2012 | 12:15am CEST

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
share with twitter share with LinkedIn share with facebook
share via e-mail
0
React to this article
Latest news on JPMORGAN CHASE & CO.
05/31DJCITIGROUP : Global Financial Institutions Are in Retreat -- WSJ
05/30DJWHEN BIGGER ISN'T BETTER : Banks Retreat From Global Ambitions
05/29 JPMORGAN CHASE : Aramco may appoint JPMorgan, HSBC for bond sale
05/28 JPMORGAN CHASE : CCI OKs EDELWEISS BUY OF JP MORGAN'S INDIA MF BIZ
05/27DJU.S. First-Quarter GDP Growth Revised Higher to 0.8%
05/27DJLendingClub Talking With Citigroup About Loan Purchases
05/26DJGogo Cancels Bond Sale While It Negotiates Airline Internet Deal
05/26 DEADLINE UPCOMING IN $150 MILLION SE : JPM) Investor Lawsuit
05/26 Four Chinese banks among world's 10 largest
05/26 China Occupied 4 of Top 10 Banks
Advertisement
News chart
Full-screen chart
Income Statement Evolution
More Financials