- Bank destroyed 47 million emails
- Including 5-year-old emails
- The company will now pay a $4 million fine
JPMorgan Chase & Co.. Agreed to settle with the SEC and pay a $4 million fine. This is how they will dismiss the Commission’s charges that more than 47 million electronic records were mistakenly deleted.
These are emails and instant messages that came into the bank from January 2018 to April 2018. By law, the company must keep them for at least 3 years. But the system in question had a system failure, and the correspondence disappeared.
In 2019, the SEC filed a lawsuit accusing bankers of unreliable data storage. The commission said the deletion of the emails complicates the investigation of some cases.
“Since the deleted records cannot be recovered, it is unknown how the lost records may have affected regulatory investigations,” the complaint said.
JPMorgan neither admits nor denies the regulator’s charges.
It is interesting that the bank already had a fine in 2021 on a similar charge. They paid $125 million to the SEC and $75 million to the Commodity Futures Trading Commission for removing work correspondence from WhatsApp.
In 2005, JPMorgan paid $700,000 for electronic document retention violations. This lawsuit concerned files created back in the dawn of the Internet in 1999 and 2002.
We recall that yesterday the cryptocurrency exchange Binance filed a lawsuit against the SEC. They accuse the regulator of defaming the company’s offshore operations.
They accuse the regulator of defaming the company’s offshore operations.