JP Morgan gives pocket relief relief to some workers better

JPMorgan Chase & Co. Bank Location Income Figures

Photographer: Mark Kauslerich / Bloomberg

JPMorgan Chase & Co. found that some of its employees applied improperly and received Kovid-Relief money, which according to a person knowledgeable on the case, to legitimate US businesses affected by the epidemic.

The bank discovered actions that were all linked to the economic injury disaster loan program, after noting that the suspicious funds were deposited in checking accounts owned by bank employees, saying the person was not identified Because information is private. The findings prompted an unusual all-staff message from JP Morgan on Tuesday that surprised many across the industry for its apparent admission of potentially illegal acts while not describing what they had done.

The Small Business Administration’s disaster lending program was greatly expanded as the shutdown was shut down across the country due to the epidemic, which led many small enterprises to need a cash lifeline. Unlike the paycheck protection program, banks did not issue or reduce disaster loans and grants. Instead, loans or grants came directly from the SBA.

The findings of employee misconduct came in a broad sweep of personal accounts that received business support, the person said. SBA Warned banks on 22 July to search for suspicious deposits or activity as part of the EIDL program.

The agency’s inspector has since marked evidence of fraud in the program, stating that it identified more than $ 250 million in aid given to potentially ineligible recipients, as well as possibly $ 45.6 in fake payments. Million assisted. A Bloomberg Businessweek analysis of SBA data last month identified $ 1.3 billion in suspicious payments.

Read more: Phantom companies receive more than $ 1 billion in aid

A JP Morgan spokesman declined to comment.


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