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The memo was sent to 256,710 employees of the bank’s operating committee led by CEO Jamie Dimon. He said that while the pandemic brought out the best in many workers, some clients abused the government’s coronavirus relief programs, according to CNBC.
“Unfortunately, we have also seen conduct that does not live up to our business and ethical principles, and may even be illegal,” the email read, CNBC reported. “This includes instances of customers misusing the Paycheck Protection Program [PPP] loans, unemployment benefits and other government programs. Some employees have also fallen short. “
JP Morgan spokeswoman Trish Wexler declined to comment to CNBC about how the bank’s employees had fallen short of their duties.
“We are doing everything we can to identify those cases and cooperate with law enforcement when appropriate,” Wexler told CNBC. “We want you to know why we need everyone to be vigilant.”
Earlier this month, a Congressional investigation found that more than $ 1 billion in APP funds went to small and medium-sized businesses (SMEs) that received multiple loans, a violation of federal program rules.
Staff from the House Select Subcommittee on the Coronavirus Crisis examined more than 5.2 million loans totaling $ 525 billion in PPP forgivable loans issued by the Small Business Administration (SBA) and the Department of the Treasury.
The report found 10,856 loans where borrowers appeared to receive multiple loans. The panel also found about 600 loans totaling more than $ 96 million that went to companies suspended from doing business with the government.
Under the terms of the initiative, SMEs could apply for a loan of up to $ 10 million, while the SBA reported that most loans were $ 150,000 less. You do not need to pay back the money if at least 60 percent of the income is spent on payroll.
In June, the inspector general of the US Department of Labor reported that scammers are taking up to $ 26 billion in unemployment benefits or are doing it improperly for one reason or another. The estimate is based on a 10 percent fraud and abuse rate applied to the $ 260 billion expansion in unemployment benefits under the CARES Act.
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NEW PYMNTS DATA: STUDY HOW WE BUY – SEPTEMBER 2020
the How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online amid the COVID-19 pandemic. Our research is based on a series of studies conducted since March, in which more than 16,000 consumers were surveyed on how their shopping habits and payment preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and contactless digital methods such as QR codes, contactless cards, and digital wallets, is poised to shape the post-pandemic economy.
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