examines JPMorgan’s dealmaking frenzy
April 7, 2017 (Reuters) – U.S regulators are examining JPMorgan Chase & Co. (JPM.N), according to the Financial Times, citing people who were familiar with the matter.
According to the report, the Office of the Comptroller of the Currency (OCC), had scheduled a special audit of JPMorgan’s transaction making after the bank bought dozens of smaller businesses in 2021 and 2022.
After the U.S. government brought criminal charges against Charlie Javice (founder of the now-defunct college financial aid company Frank), for defrauding JPMorgan to buy the startup for $175million in 2021
Javice, 31, was accused of lying to the largest U.S. Bank by claiming Frank had lined up 4.25 Million student customers when she actually had data for only 300,000.
JPMorgan had sued Javice, Olivier Amar and Frank in Delaware federal court. According to the report, the OCC audit was scheduled prior to JPMorgan’s lawsuit.
Javice filed counterclaims against JPMorgan in February. She accused JPMorgan of “compromising her reputation” by withholding $28 Million of equity and retention payments.
Frank was shut down by the bank in January. Chief Executive Jamie Dimon called the acquisition a “huge error” during a conference call with analysts on Jan. 13.
JPMorgan declined to comment, as did a spokesperson from the OCC.
Reporting by Baranjot in Bengaluru; Editing and Jamie Freed by Jason Neely, Mark Porter
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