The Federal Energy Regulatory Commission (FERC) fined a unit of J.P. Morgan Chase & Co. The energy regulator sanctioned JP Morgan Ventures Energy Corporation (JPMVEC) USD 410 million in penalties and disgorgement. The regulatory body said that the fine was for allegations that JPMVEC manipulated markets on its bidding activities. The agreement stated that USD 285 million will go to the US Treasury as civil penalty, while USD 125 million in unjust profits will be disgorged.
JPMVEC did not admit or deny the allegations but admitted to the facts stated in the agreement. The JP Morgan unit was placed under fire for violations about electricity markets in California and the Midwest from September 2010 to November 2012. FERC investigated and found that the firm was involved in 12 manipulative bidding strategies. In addition to paying the fines, JPMVEC also said that it would waive claims for further payments from the California Independent System Operator.
Join the Conversation