A New York federal judge approved a $153.6 million settlement by JP Morgan Chase & Co. of allegations by the U.S. Securities and Exchange Commission that the bank misled investors in a mortgage securities transaction just as the housing market was starting to plummet.
JPMorgan didn’t admit or deny allegations in the complaint. It will pay a civil penalty of $133 million, plus $18.6 million repayment of its profits and $2 million in interest. Of the payments, $126 million are set for investors who bought notes in a product called Squared CDO 2007-1.
The order also stated that JPMorgan and its employees are barred from making money by “means of any untrue statement of a material fact or any omission of a material fact” or engaging in any transaction which “would operate as a fraud or deceit upon the purchaser.”
