Allegations and Defamation
Former JPMorgan Securities financial advisor Michael Nolan accused the bank of defamation after it filed a Form U5 with FINRA alleging he violated company policy and shared sensitive information with a client.
FINRA’s Ruling
After an arbitration process, FINRA ordered JPMorgan Chase to pay Nolan $250,000 in damages. The regulator also directed the bank to remove all defamatory language from Nolan’s Form U5.
Nolan’s Defense
Nolan, who worked at JPMorgan for 41 years, denied the allegations and cited FINRA Rule 1122, which prohibits financial institutions from filing misleading information about registered advisors.
JPMorgan’s Financial History
Since 2000, JPMorgan Chase has paid over $522 million in fines related to employment offenses. Despite this, the bank generated $49.6 billion in profit last year.
