The Securities and Exchange Commission (SEC) today announced settled charges against JPMorgan Chase Bank, N.A. and J.P. Morgan Securities LLC (together, J.P. Morgan), both registered security-based swap dealers, arising out of the prohibited involvement by a statutorily disqualified person in security-based swap transactions effected on J.P. Morgan’s behalf.

According to the SEC’s order, from November 2021 to March 2024, J.P. Morgan permitted a person subject to a statutory disqualification to effect or be involved in effecting a total of at least 800 security-based swap transactions on behalf of J.P. Morgan with or for U.S. counterparties.

The order also finds that J.P. Morgan also did not have a reasonably designed supervisory system in place to detect and prevent prohibited security-based swap activity by a statutorily disqualified person.

These violations occurred while J.P. Morgan was in the process of seeking permission from the SEC to allow the statutorily disqualified person to effect or be involved in effecting security-based swaps on its behalf.

The SEC’s order finds that J.P. Morgan willfully violated Sections 15F(b)(6) and 15F(h) of the Securities Exchange Act of 1934 and Rule 15Fh-3(h)(1) thereunder.

Without admitting the SEC’s findings, J.P. Morgan consented to a cease-and-desist order and a censure.