Claims involve more than $100 million in denied customer reimbursements
Federal prosecutors earlier this year reviewed claims concerning JPMorgan Chase’s handling of fraud cases, according to people familiar with the matter.
The claims alleged that executives ignored deficiencies in the bank’s antifraud program. They also alleged that the bank improperly denied more than $100 million in reimbursements to customers whose money was stolen.
The reported allegations cover two parts of the bank’s response to fraud: the operation of controls intended to prevent fraud and decisions about whether customers should receive reimbursement after their money was taken.
The information about the prosecutors’ review came from people familiar with the matter, according to The Wall Street Journal. The source material did not identify the people or describe their roles.
The report described the claims as whistleblower allegations. It did not provide a finding by prosecutors or an outcome from their review.
The allegations concern customer losses and the bank’s obligations under its antifraud program. The reported dollar amount refers to reimbursements that the claims said were improperly denied, not to a confirmed government finding.
The source material also did not say whether prosecutors brought charges, issued a public report or required JPMorgan Chase to take a particular action.