According to Bloomberg, two US churches accuse JPMorgan of having a conflict of interest and putting their it’s own financial interests first. Christ Church Cathedral alleges JP Morgan largely invested the churches trust in products that would generate revenue for the bank. Some of the products allegedly carried fees in excess of 8% a year. The church further alleges that such products cost the trust $13 million over nine years.
According to reports, the Sandcrest foundation filed similar charges against the bank. The claims followed a business standard report released by JPMorgan in response to pressure from other religious organizations.
JP Morgan stepped down as trustee for Christ Church Cathedral and denied any wrongdoing. The bank has filed to have the case dismissed.
Trustees have a fiduciary a duty to put the beneficiaries interests above their own. If a trust manager largely concentrated a trust with their own products, it could be considered a gross conflict of interest.
The foregoing information, which is all publicly available on Bloomberg’s’ website, is being provided by The White Law Group.
The White Law Group, LLC is a national fraud, securities arbitration, investor protection and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.
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