With Timothy Fletcher’s cooperation, the U.S. Justice Department, the Federal Reserve and the SEC will follow through with any pending or potential enforcement action against other individuals who are or were affiliated with the Hong Kong unit of JPMorgan Chase & Co. Was JPMorgan Chase & Co’s Hong Kong unit infiltrated by Chinese intelligence for economic or financial benefits?
The U.S. Federal Reserve disclosed it has barred Timothy Fletcher, a former Managing Director from JPMorgan Chase & Co, for life over his role in a hiring program in China for which the bank had to shell out $264 million in fine in 2016.
According to the Federal Reserve, Fletcher had “improperly administered” the hiring program to include relatives of Chinese officials “in order to obtain improper business advantages for the firm.”
Fletcher has consented to the prohibition.
Fletcher had worked at JPMorgan’s Hong Kong unit. He could not could immediately be reached for comment.
In 2016, JPMorgan Chase & Co had agreed to pay a total fine of $264 million to the U.S. Securities and Exchange Commission (SEC), the Federal Reserve and to the Justice Department to resolve the allegations of its hiring program which violated the U.S. Foreign Corrupt Practices Act.
The Federal Reserve concluded that Fletcher had “engaged in unsafe and unsound practices, breaches of fiduciary duty, and violations of law.”
The Federal Reserve now requires Fletcher to cooperate in any pending or potential enforcement action against other individuals who are or were affiliated with the Hong Kong unit of JPMorgan Chase & Co.