Article: SEC CHARGES TWO FORMER DIRECTORS OF J.P. MORGAN SECURITIES WITH FRAUD IN CONNECTION WITH UNLAWFUL PAYMENT SCHEME TO OBTAIN MUNICIPAL BOND, SWAP BUSINESS

WASHINGTON, Nov. 4 -- The Securities and Exchange Commission issued the following litigation release:

The Securities and Exchange Commission today charged Charles E. LeCroy and Douglas W. MacFaddin, two former directors of J.P. Morgan Securities Inc. with fraud in connection with an unlawful payment scheme which allowed J.P. Morgan Securities to obtain $5 billion in Jefferson County, Alabama municipal bond offerings and swap agreement transactions.

The SEC complaint, filed in the U.S. District Court for the Northern District of Alabama, alleges that between October 2002 and November 2003, LeCroy and MacFaddin directed over $8 million in payments from J.P. Morgan Securities to close friends ...

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