The Federal Reserve Board on Feb. 21 permanently barred from the banking industry a former managing director at a non-bank subsidiary of JPMorgan Chase.
Timothy Fletcher consented to the prohibition, which includes allegations that he improperly administered a referral hiring program at the firm by offering internships and other employment opportunities to individuals referred by foreign officials, clients, and prospective clients in order to obtain improper business advantages for the firm. The Federal Reserve Board is also requiring Fletcher to cooperate in any pending or prospective enforcement action against other individuals who are or were affiliated with the firm.
JPMorgan was previously fined $61.9 million by the Federal Reserve Board relating to this program. Additionally, in November 2016, JPMorgan settled related charges with the Securities and Exchange Commission (for $130 million) and Department of Justice ($72 million), resulting in a combined total of more than $264 million in sanctions resulting from the firm’s referral hiring practices.