JPMorgan On Hook For $18M Over Trust Fund Losses

Law360, New York (October 10, 2012, 2:42 PM EDT) -- An Oklahoma state judge on Tuesday slapped JPMorgan Chase & Co. with an $18 million judgment and punitive damages after the banking giant purportedly cost a family trust fund millions by entering into unauthorized complex securities investments. 

Tulsa County District Judge Linda G. Morrissey said JP Morgan breached its fiduciary duties to the Carolyn S. Burford trust by negotiating “variable prepaid forward contracts,” investments outside the bounds of the trust’s strict investment terms.

The strategy cost the fund more than 220,000 shares in Exxon Mobil Corp.,...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.