Secretary of State Reaches Settlement With JPMorgan Chase
Indiana’s Secretary of State has announced a nearly $1 million settlement with New York-based JPMorgan Chase & Co. (NYSE: JPM). Connie Lawson’s office says the settlement is the result of an investigation into the company’s role in the creation and sale of residential-mortgage backed securities in Indiana.
The settlement totaled $905,000. JPMorgan Chase allegedly failed to disclose critical information regarding the underlying collateral loans to investors who purchased particular securities.
"Investors have the right to know all the facts and to receive complete information when deciding to invest," said Lawson. "This right extends whether a casual Hoosier investor or an institutional investor."
Per the agreement, JPMorgan must remediate all losses for a 2006 investment made by the Indiana State Teachers’ Retirement Fund. The company will also pay penalties and costs of $520,000 and send $250,000 to the Investor Protection Trust on Indiana’s behalf.
The Secretary of State’s office uses money from the Investor Protection Trust to promote financial literacy and prevent fraud throughout the state.
"We are pleased to be able to return money to the Indiana State Teachers’ Retirement Fund," said Securities Commissioner Alex Glass. "Our number one goal is to make victims whole whenever possible."