TELETRADER News
12/27/2018, 4:08 AM (Source: TeleTrader)
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JPMorgan to pay $135M for improper handling of ADRs

JPMorgan Chase Bank needs to pay $135.1 million to settle the United States Securities and Exchange Commission's (SEC) charges for "improper handling" of American Depositary Receipts (ADR), which are US securities that represent foreign shares of foreign companies.

JPMorgan neither "denied or admitted" SEC's charges of issuing the depositary receipts to brokers without them having the foreign shares to support the new ADRs.

"With these charges against JPMorgan, the SEC has now held all four depositary banks accountable for their fraudulent issuances of ADRs into an unsuspecting market. Our investigation continues into brokerage firms that profited by making use of these improperly issued ADRs," Sanjay Wadhwa, Senior Associate Director of the SEC said.

Breaking the News / MD