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Whistleblower recieves $78 Million For Work in JPMorgan Fund Scam

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A financial forensic investigator has been rewarded for his years of work on a financial scam involving JP Morgan that resulted in a $267 million settlement with the Commodity Futures Trading Commission (CFTC).

The investigator, Edward Siedle, who formerly worked for the Securities and Exchange Commission,  received $78 million as a reward for his efforts in the scam, as reported in the New York Post. 

Edward Siedle, the pension detective

 

The scam found that JP Morgan was directing its own high-net worth  clients towards high-fee funds than those offered by competing firms. These funds included commodities-related funds, so the CFTC became involved in the lawsuit against JP Morgan. The bank also agreed to pay the CFTC $100 million to settle that violation, plus the $267 million to settle the charges filed by the SEC.

Sources cited by the Post said this is the largest reward ever paid to a whistleblower.  The award to whistleblowers was part of the original Dodd-Frank financial reform law that Republicans have been fighting since its inception in 2010.  The Republicans have consistently moved to repeal or reduce the Act’s scope,  while it has also pursued other anti-investor initiatives, such as defunding or closing the Consumer Finance Protection Bureau.  

Whistleblowing Is Crucial

While whistleblowing is one of the most powerful weapons against omnipotent corporations that use their power to beat down opposition, this practice also has its detractors. But whistleblowing is growing in popularity even though it does not receive a lot of publicity.

This may be one reason why CBS is broadcasting a new series on this topic. For details , see this CBS site. 

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Chuck Epstein

Chuck Epstein

Chuck Epstein has managed marketing communications and public relations departments for major global financial institutions and participated in the launch of industry-changing financial products. He also has written by-lined articles for over 50 publications, five books and served as editor and publisher of nation’s first newsletter on the topic of using the PC for personal investing and trading. (“Investing Online, 1994-1999). He also is a marketing consultant, writer and speaker on topics related to investor protection and opportunities in the very dynamic cannabis industry.

He has held senior-level marketing, PR and communications positions at the New York Futures Exchange, Chicago Mercantile Exchange, Lind-Waldock, Zacks Investment Research, Russell Investments and Principal Financial.

He has won national awards from the Mutual Fund Education Alliance (MFEA) and his web site, www.mutualfundreform.com, was named best small blog in 2009 by the Society of American Business Editors and Writers (SABEW).

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