The Financial Industry Regulatory Authority (FINRA) has ordered JPMorgan Chase to pay hundreds of thousands of dollars in damages to a former employee who accused the bank of defamation.
Former JPMorgan Securities (JPMS) financial advisor Michael C. Nolan says the trillion-dollar lender damaged its reputation in a Form U5 filing with FINRA after leaving the bank in 2022.
FINRA requires member organizations to file a Form U5 to explain why individuals left the firm.
In its Form U5, JPMorgan alleged that Nolan violated company policy and shared sensitive information with a customer.
“The Registered Representative is under internal review for allegedly: sharing material, non-public information with a customer; failing to properly disclose his personal connection to an outside business interest before requesting information from established sources about the outside interest; and violating the company’s policy prohibiting the use of unapproved electronic communications channels for business communications.”
Nolan, who worked at JPMorgan for 41 years, denies the allegations and has filed a dispute claim citing FINRA Rule 1122, which prohibits financial institutions from submitting misleading information about a registered advisor.
After more than a year of arbitration, FINRA awarded Nolan $250,000 in damages and ordered JPMorgan to remove all defamatory language and comments on his Form U5.
“[JPMorgan Chase] is liable for and will pay to the plaintiff the sum of $250,000.00 in compensatory damages, including the claim for disbursement/indemnity.”
JPMorgan Chase has paid out a total of $522.448 million in fines imposed by U.S. regulators, enforcement agencies and lawsuits related to employment violations since 2000, according to Violation Tracker, a comprehensive database of corporate misconduct.
The bank generated $49.6 billion in profits last year.
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