(Reuters) – JP Morgan Chase & Co. (JPM.N) On Wednesday sacked several employees who had allegedly misused funds in businesses dealing with the COVID-19 epidemic, the Financial Times reported, citing one person familiar with the situation.
People who received loans under the Economic Injury Disaster Loans (EIDL) program were not working as employees of JP Morgan, the person said.
However, breaking the law was a violation of the bank’s code of conduct and some people were fired as a result of their improper EIDL applications, the person added.
The lender found that some of its own employees had, as reported, deposited suspicious EIDL money into their Chase checking accounts.
Those cases account for a “very small” percentage of the total suspicious activity exposed by JP Morgan, the person said.
Reuters reported on Tuesday that the lenders were investigating employees who were involved in misappropriation of funds for COVID-19 relief, citing an internal memo.
The memo stated that the bank found cases of customers “misusing paycheck protection program loans, unemployment benefits and other government programs.”
JPMorgan Chase was not immediately available for Reuters request for comment.
Reporting of Shraddha Singh in Bengaluru; Editing by Subhranshu Sahu