JPMorgan investigating employees and clients over coronavirus stimulus programs1 min read . Updated: 09 Sep 2020, 09:15 AM IST
The bank said it found wrongdoing involving the Paycheck Protection Program, unemployment benefits and other government programs.
JPMorgan Chase & Co. has found evidence of employees and customers misusing the government’s flood of stimulus funds this spring and is cooperating with authorities, the bank’s leaders told employees Tuesday.
In a memo to employees, the bank didn’t detail specific instances but said it had found customer wrongdoing involving the small-business rescue plan known as the Paycheck Protection Program, unemployment benefits and other government programs aimed at easing the coronavirus pandemic’s economic effects. “Some employees have fallen short, too," the memo said, without elaborating.
The memo described the issues as “conduct that does not live up to our business and ethical principles—and may even be illegal."
A bank spokeswoman declined to provide more details.
JPMorgan delivered $28 billion in loans through the small-business lending program, the largest amount by any bank in the rush to pump the government’s money out the door. Investigators and lawmakers have already been probing the program for fraud.
The memo said the operating committee was sending it to remind staff to be alert for fraud. The bank employs more than 250,000 people.
Bloomberg News earlier reported on the memo.
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