JP Morgan Chase is a far-flung banking colossus that offers a wide range of banking and financial services—and just cannot seem to stay out of regulatory hot water.
Headquartered in New York City, JP Morgan Chase is the largest bank in the United States and the fourth largest financial bank on the planet when tabulated by assets.
Tax controversy is no stranger to Chase. The Wikipedia page tabulating scandals, alleged tax crimes, and settlements accrued to the bank is extensive. While the bank has an impressive pedigree and sits atop the financial world, it has an equally impressive laundry list of bad deeds. Consider just a couple of feats:
- Enron: Partnering with Enron in securities fraud eventually cost Chase about $2 billion to bail itself out.
- UK Financial Services Authority: The institution only paid $49.12 million for not following best banking practices to separate client finds during the merger of JP Morgan and Chase.
- Foreclosing on military personnel: Chase admitted to overcharging approximately 6,000 active-duty members of the military with regard to their mortgages.
- Mortgage lending practices: JP Morgan Chase agreed to pay $13 billion in a civil settlement for involvement in mortgage lending practices that contributed to the 2008 financial crises.
- Bernie Madoff: Chase agreed to pay $2 billion to move past civil and criminal wrongdoing related to the Bernie Madoff scandal. Mr. Madoff apparently said that Chase turned a blind eye to his dealings. Avoiding any real hit, the bank put anti-money laundering practices in place, contributed $1.7 billion to the cause and called it a day.
- Just friends and family: A $264 million price tag was the cost of settling JP Morgan Chase out of criminal and civil bribery charges based on deals made by the bank with Hong Kong interests. In exchange for involvement in the deals, the bank agreed to hire hundreds of friends and family members of officials of the Chinese government.
- Poor environmental citizen: JP Morgan Chase has earned a black eye from those concerned with the environment and climate change. The bank largely supports fossil fuel interests, and other unpopular scenarios like fracking in the (melting) Arctic.
- Back to helping clients with tax fraud: In early September 2021, Chase agreed to pay a small $29.6 million fine after a French criminal tax investigation found the company was continuing to aid client companies commit tax crimes.
Despite its financial heft, JP Morgan Chase seems to have a tough time staying on the right side of history. With the latest settlement just this month, it is not likely JP Morgan Chase will change its winning strategies anytime soon.
Speak with an experienced tax attorney in Cleveland about foreign bank accounts, offshore interests, or tax controversy
The experienced tax lawyers at Robert J. Fedor, Esq., LLC provide strategic solutions to complicated tax problems for businesses and individual clients around the world. When you need focused advice or if you have been contacted by the IRS—contact us or call 800-579-0997. We have offices in Cleveland and Chicago, Illinois.