WASHINGTON – The United States has fined financial institution JPMorgan Chase US$4 million (RM18.7 million) for deleting approximately 47 million electronic communications from January to April 2018, the US Securities and Exchange Commission (SEC) said in a document filed yesterday.
“Respondent JPMorgan shall, within 14 days of the entry of this order, pay a civil money penalty in the amount of US$4 million to the Securities and Exchange Commission for transfer to the general fund of the United States Treasury,” the filing said, reported Sputnik.
Many of the deleted communications were business records required to be retained under US law, the filing said. The communications are “unrecoverable”, the filing added.
JPMorgan reported the deletion event to the SEC in January 2020, the filing said. The financial institution received subpoenas and document requests in at least twelve civil securities-related regulatory investigations where communications could not be produced due to deletion, the filing said.
It is “unknowable” how the lost records may have impacted the regulatory investigations, the filing said.
In addition to the US$4 million fine, the SEC ordered JPMorgan to cease and desist from committing future violations and censured the financial institution, according to the filing. – Bernama, June 23, 2023
