The brokerage unit of JPMorgan Chase & Co. (NYSE:JPM) agreed to pay a settlement for the accidental deletion of electronic messages it was meant to keep.
JPMorgan has been asked to pay $4 million in a settlement with the U.S. Securities and Exchange Commission for transfer to the general fund of the United States Treasury.
SEC says that the deleted messages could affect future investigations, legal matters, and regulatory inquiries.
These proceedings arise from JPMorgan’s deletion of 47 million electronic communications in about 8,700 electronic mailboxes between January 1 to April 23, 2018.
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JPMorgan mistakenly erased the texts while attempting to clear a backlog of communication dating back to the 1970s, violating rules requiring brokers to retain communications for at least three years.
Price Action: JPM shares are trading lower by 0.51% at $138.87 premarket on Friday.
