JPMorgan says some employees have ‘fallen short’ as bank probes relief abuses

JPMorgan Chase welcomed employees again from a protracted vacation weekend with a troubling message of their inboxes: Some of them could have been concerned in probably criminality.

The bank’s working committee, led by CEO Jamie Dimon, despatched an e-mail Tuesday morning to 256,710 employees saying that whereas the pandemic has introduced out the most effective in lots of employees, there have been situations the place clients abused the federal government’s coronavirus relief applications.

“Unfortunately, we’ve also seen conduct that does not live up to our business and ethical principles — and may even be illegal,” the bank’s committee stated. “This includes instances of customers misusing Paycheck Protection Program loans, unemployment benefits, and other government programs. Some employees have fallen short, too.”

The authorities’ mammoth $2.2 trillion coronavirus relief package deal included the Paycheck Protection Program for small companies, enhanced unemployment advantages for people, and assist for bigger corporations. Fraud consultants had anticipated the program of that measurement would lead to some aspect of abuse, and circumstances have emerged the place criminals used PPP funds to buy Lamborghinis and different luxurious gadgets.

But PPP had been designed by the Treasury Department as basically an honor system that puts a lot of the onus on the candidates, who needed to certify on the necessity for these loans, and never the banks or its employees. JPMorgan spokeswoman Trish Wexler declined to touch upon precisely how bank employees had fallen quick of their duties.

We are doing all we are able to to determine these situations, and cooperate with legislation enforcement the place acceptable,” the bank stated. “We want you to know because we need everyone to be vigilant.”

Lawmakers have been at a deadlock overextending a number of key components of the pandemic relief program, and new revelations of abuse could not assist in these negotiations. JPMorgan, the most important U.S. lender by belongings, was the largest issuer of PPP loans, doling out greater than $29 billion in this system. Bloomberg reported on the memo earlier.

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