[July 08, 2011] Tennessee among 25 states in JP Morgan Chase settlement Tweet NASHVILLE, Jul 07, 2011 (The Knoxville News-Sentinel - McClatchy-Tribune Information Services via COMTEX) -- Tennessee is one of 25 states to reach a $92 million settlement with JP Morgan Chase & Co. as part of an ongoing national investigation into charges the investment brokerage was involved in anticompetitive and fraudulent activities in the municipal bond derivatives industry. As part of the multistate agreement announced today, JP Morgan Chase has agreed to pay $65.5 million in restitution to affected state agencies, municipalities, school districts and nonprofit organizations that entered into municipal derivative contracts with the brokerage between 2001 and 2005. JP Morgan Chase also agreed to pay a $3.5 million civil penalty and $6 million in fees and costs of the investigation to the states involved. The settlement also requires JP Morgan Chase to pay $17 million in restitution to other government and nonprofit organizations as part of separate agreements the company reached with the Securities and Exchange Commission and the Office of the Comptroller of the Currency. The state, SEC and OCC settlements are part of a larger $228 million settlement JP Morgan Chase reached with the U.S. Justice Department's Antitrust Division, the Internal Revenue Service and the Federal Reserve Board. JP Morgan Chase associates are accused of rigging bids by submitting non-competitive courtesy bids and submitting fraudulent certifications of compliance to government agencies in addition to other violations of U.S. Treasury regulations. In a statement today, JP Morgan Chase said it does not tolerate anticompetitive activity or other violations of law and that it assisted government agencies in their investigations. "The investigations focused on a small desk that was discontinued and on certain employees who are no longer with the firm. These employees concealed their conduct from management," the company said in a statement. To see more of The Knoxville News-Sentinel or to subscribe to the newspaper, go to http://www.knoxnews.com. Copyright (c) 2011, The Knoxville News-Sentinel, Tenn. Distributed by McClatchy-Tribune Information Services. For more information about the content services offered by McClatchy-Tribune Information Services (MCT), visit www.mctinfoservices.com. [ Back To TMCnet.com's Homepage ]