Grimy Times Exclusive: J.P. Morgan Securities LLC, a subsidiary of J.P. Morgan Chase Bank N.A., has been sued by New York Attorney General Eric T. Schneiderman for allegedly making fraudulent misrepresentations and omissions to promote the sale of residential mortgage-backed securities (RMBS) to investors. The lawsuit, filed in 2013, alleges that the defendants deceived investors as to the care with which they evaluated the quality of mortgage loans packaged into RMBS prior to Bear Stearns & Co’s collapse in early 2008, incurring losses that have totaled approximately $22.5 billion to date.
J.P. Morgan Securities LLC is accused of making false statements about the quality of the mortgage loans that were packaged into RMBS, which were then sold to investors. The lawsuit alleges that the defendants failed to disclose the true risks associated with these mortgage loans, leading to significant losses for investors.
According to the lawsuit, the defendants’ actions were part of a broader scheme to deceive investors and enrich themselves at the expense of others. The lawsuit seeks damages and penalties for the defendants’ alleged wrongdoing.
The RMBS Working Group, a state-federal task force created by President Obama in 2012, contributed significantly to the investigation and prosecution of this case. The group includes members from the U.S. Department of Justice, the U.S. Securities and Exchange Commission, and other federal and state agencies.
“This lawsuit will bring accountability for the misconduct that led to the crash of the housing market and the collapse of the American economy,” said Attorney General Schneiderman. “Our lawsuit demonstrates that there is one set of rules for all – no matter how big or powerful the institution may be – and that those rules will be enforced vigorously.”
The case is a significant development in the ongoing efforts to hold accountable those responsible for the financial crisis. It serves as a reminder that the financial industry must be held to high standards of integrity and transparency, and that those who engage in wrongdoing will be held accountable.
Mandatory Facts:
Defendant: J.P. Morgan Securities LLC
Criminal Charges: Making fraudulent misrepresentations and omissions to promote the sale of residential mortgage-backed securities (RMBS) to investors
City and State: New York, NY
Date: 2013
Sentence or Outcome: Ongoing litigation
Dollar Amounts: $22.5 billion in losses incurred to date
Related Federal Cases
- Carl R. Ruderman, Securities Fraud, New York 2018 · Florida
- Gregory W. Gray Jr., Securities Fraud and Perjury, New York NY, 2023 · Illinois
- Galanis Jason, Securities Fraud, New York 2024 · California
- Kobi Alexander, Securities and Accounting Fraud, New York 2007 · Pennsylvania
- Robert Walter Murray, Securities and Wire Fraud, New York 2016 · Virginia
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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