Individuals who blew the whistle on a mortgage fraud scheme that cost JPMorgan Chase $296 million in fines have three months to prove that their information helped lead to the settlement.
The Securities and Exchange Commission filed a lawsuit in November charging JPMorgan Chase with misleading investors about loans that provided collateral for a December 2006 offering of residential mortgage-backed securities.
"Whoever can show they provided information that enabled the Securities and Exchange Commission to extract a pledge by the nation's biggest bank has until May 9 to document how he or she helped regulators enforce laws that led to the settlement, the SEC said Friday," writes American Banker's Brian Browdie.
At least one unnamed person provided information about the alleged violations of securities laws by JPMorgan Chase and Bear Stearns leading to the lawsuit. Under the SEC's whistleblower program, which was created by Congress as part of the Dodd-Frank Act, eligible whistleblowers can claim between 10% and 30% of penalties collected by the regulators.
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