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NEW YORK: JPMorgan Chase & Co on Wednesday (Sept. 9) fired several employees who allegedly misused funds that would allegedly help companies deal with the COVID-19 pandemic, the Financial Times reported, citing one person. familiar with the situation.
The people who fraudulently borrowed under the Economic Injury Disaster Loan (EIDL) program had not acted as JPMorgan employees, the person said.
However, breaking the law was a violation of the bank’s code of conduct and some people were fired as a result of their incorrect EIDL requests, the person added.
The lender discovered that some of its own staff had deposited suspicious EIDL funds into their Chase checking accounts, according to the report.
Those cases represented a “very small” percentage of the total suspicious activity discovered by JPMorgan, the person said.
Reuters reported Tuesday that the lender was investigating employees who may have been involved in the misuse of funds intended for COVID-19 relief, citing an internal memo.
The memo said the bank had found cases of customers “misusing loans from the Paycheck Protection Program, unemployment benefits, and other government programs.”
JPMorgan Chase was not immediately available for a request for comment from Reuters.
