JPMorgan Hit With $348M Debt Insurance Fraud Suit

Law360, New York (June 17, 2010, 12:43 PM EDT) -- JPMorgan Chase Bank NA is accused of fraudulently inducing Assured Guaranty Municipal Corp. to insure an Alabama county's municipal debt for $348 million, money that is now tied up in a corruption scandal that has already resulted in more than 20 criminal convictions.

The suit arises from “one of the biggest cases of municipal corruption in U.S. history and a massive fraud” perpetrated by JPMorgan, J.P. Morgan Securities Inc. and Jefferson County, Ala., in connection with billions of dollars of municipal debt to finance a sewer...
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