According to persons familiar with the situation, the Financial Times reported on Friday that JPMorgan Chase & Co. is under investigation by US regulators about the due diligence the firm performed on several of its prior acquisitions.
Following the bank's acquisition of hundreds of smaller businesses in 2021 and 2022, the Office of the Comptroller of the Currency (OCC) planned a specific examination of JPMorgan's deal-making, according to the report.
Following the filing of criminal accusations against Charlie Javice, the founder of the now-defunct college financial aid firm Frank, the US government accused him of tricking JPMorgan into purchasing the startup for $175 million in 2021.
The Department of Justice accused Javice, 31, of regularly lying to the biggest U.S. bank by asserting that Frank had secured 4.25 million student clients when in fact she only had information on only 300,000.
In December, JPMorgan filed a lawsuit in federal court in Delaware against Javice and Olivier Amar, who served as Frank's chief growth officer. Before JPMorgan's lawsuit, the OCC audit was planned, according to the report.
In February, Javice filed counterclaims, alleging that JPMorgan had "compromised her reputation" and had illegally withheld $28 million in equity and retention payments.
In a conference call with analysts on January 13, Chief Executive Jamie Dimon referred to the bank's closure of Frank as a "huge mistake."
Both JPMorgan and an OCC representative declined to comment on the report.
(Source:www.nypost.com)
Following the bank's acquisition of hundreds of smaller businesses in 2021 and 2022, the Office of the Comptroller of the Currency (OCC) planned a specific examination of JPMorgan's deal-making, according to the report.
Following the filing of criminal accusations against Charlie Javice, the founder of the now-defunct college financial aid firm Frank, the US government accused him of tricking JPMorgan into purchasing the startup for $175 million in 2021.
The Department of Justice accused Javice, 31, of regularly lying to the biggest U.S. bank by asserting that Frank had secured 4.25 million student clients when in fact she only had information on only 300,000.
In December, JPMorgan filed a lawsuit in federal court in Delaware against Javice and Olivier Amar, who served as Frank's chief growth officer. Before JPMorgan's lawsuit, the OCC audit was planned, according to the report.
In February, Javice filed counterclaims, alleging that JPMorgan had "compromised her reputation" and had illegally withheld $28 million in equity and retention payments.
In a conference call with analysts on January 13, Chief Executive Jamie Dimon referred to the bank's closure of Frank as a "huge mistake."
Both JPMorgan and an OCC representative declined to comment on the report.
(Source:www.nypost.com)