NEW YORK, NY / ACCESSWIRE / April 3, 2024 / National investment loss and securities lawyers KlaymanToskes has filed a $16 million lawsuit against JP Morgan Chase (NYSE:JPM) following its failure to detect or suspend fraudulent wire transfers in a customer’s account which caused their client to lose $16 million. The law firm urges all current and former JP Morgan Chase customers who suffered similar conduct to contact the firm immediately at 888-997-9956.
According to the lawsuit (AAA# 01-23-0005-9530), JP Morgan Chase failed to review and/or investigate 35 international wire transfers made over a period of 56 days in their client’s account. Further, JP Morgan Chase failed to protect the customer’s funds by timely terminating or suspending the wire transfers, and/or freezing the account or taking any other reasonable steps to halt the transmission of $16,567,917, when the account did not have any history of sending wires in excess of $100,000.
It is alleged that the customer was the victim of a fraudulent scheme commonly referred to as a “Sha Zhu Pan” (杀猪盘) or a “Pig Butchering” scam, as it involves cultivating a friendly or romantic relationship with a potential investor and “fattening” them up with false narratives, in order to gain their trust and eventually solicit them to invest in a fraudulent financial opportunity. In April 2023, the Department of Justice reported that it seized over $112 million in funds linked to investment scams known as “Sha Zhu Pan”.
KlaymanToskes’ investigation found that the cumulative effect of these transactions should have prompted supervisory intervention, however, JP Morgan Chase failed to initiate any contact with the client, beyond a single phone call after the second of 35 wire transfers. Upon information and belief, the wire transfer limit at JP Morgan Chase was $500,000, therefore the repetitive and unusual nature of the transfers, which consistently hovered just at or below the $500,000 threshold, should have triggered immediate scrutiny and intervention from JP Morgan Chase’s compliance and risk management teams.
Current and former customers of JP Morgan Chase, as well as customers of any other financial institution who suffered losses due to the company’s failure to detect and/or terminate wire fraud transfers are encouraged to contact attorney Steven Toskes, Esq.at (888) 997-9956 or by email at investigations@klaymantoskes.com in furtherance of our investigation.
About KlaymanToskes
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
Contact
KlaymanToskes, P.A.
Steven D. Toskes, Esq.
888-997-9956
investigations@klaymantoskes.com
www.klaymantoskes.com
SOURCE: KlaymanToskes, P.A.