JPMorgan Chase Hit With SEC Whistleblower Complaint Over Credit Card Practices
A former JPMorgan Chase employee is suing the company for wrongful termination but more importantly she has filed a whistleblower complaint with the SEC. The allegations charge JPMorgan with robo-signing, which is the automatic generation of documents such as foreclosure notices without a notary or following the legal process, among other illegal practices.
The former employee, Linda Almonte alleges the following:
1. Chase Bank sold to third party debt buyers hundreds of millions of dollars worth of credit card accounts. . .when in fact Chase Bank executives knew that many of those accounts had incorrect and overstated balances.
3. Chase Bank executives routinely destroyed information and communications from consumers rather than incorporate that information into the consumer’s credit card file, including bankruptcy notices, powers of attorney, notice of cancellation of auto-pay, proof of payments and letters from debt settlement companies.
4. Chase Bank executives mass-executed thousands of affidavits in support of Chase Banks collection efforts and those Chase Bank executives did not have personal knowledge of the facts set forth in the affidavits.
5. When senior Chase Bank executives were made aware of these systemic problems, senior Chase Bank executives — rather than remedy the problems — immediately fired the whistleblower and attempted to cover up these problems.
To support her claims, Almonte says she has “a large volume of documents in her possession available for review by the SEC” and offers her first-hand observations as well.
Almonte’s attorney issued the following statement:
“On numerous occasions, Ms. Almonte witnessed these Affidavit Signers work through at times 3-feet tall stacks of Judgment Affidavits at once during weekly multi-hour long, non-related company meetings. The notaries were not present at these meetings. The Affidavit Signers simply relied on hourly workers to reconcile amounts owed and then treated the actual execution of the affidavits as busy work to be performed while the Affidavit Signers could focus on other matters.”