JPMorgan Unit Told To Pay $3.6M Over Risky Investments

Law360, New York (November 15, 2011, 3:50 PM EST) -- The Financial Industry Regulatory Authority on Tuesday ordered a JPMorgan Chase & Co. unit to reimburse clients $1.9 million and pay a $1.7 million fine over losses incurred from recommending unit investment trusts and floating-rate loan funds against customers' interests.

Between January 2007 and December 2008, Chase Investment Services Corp. brokers allegedly recommended the purchase of high-risk UITs and floating-rate loan funds to customers with little or no investment experience although the products were not suitable for the conservative investors, according to FINRA.

The agency alleges...
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