Jamie Dimon’s Company Fined $88.3 Million for Trading with the Enemy

That’s not the technical term for violating economic sanctions against Cuba, Sudan, Iran, and Liberia (and FWIW I think the sanctions against Cuba are stupid).

Nevertheless, that’s basically what the sanctions JP Morgan Chase just admitted to violating amount to.

The big dollar amounts involve $178.5 million in wire transfers with Cubans.

JPMC processed 1,711 wire transfers totaling approximately $178.5 million between December 12, 2005, and March 31, 2006, involving Cuban persons in apparent violation of the CACR.

But the more interesting violation came when JPMC refused to turn over some documents relating to Khartoum until the government told the bank they knew JPMC had the documents.

The apparent violation of the RPPR occurred between November 8, 2010, and March 1, 2011. On October 13, 2010, OFAC issued JPMC an administrative subpoena pursuant to section 501.602 of the RPPR directing JPMC to provide certain specified documents related to a specific wire transfer referencing “Khartoum.” In response to this subpoena and a subsequent communication, JPMC compliance management failed to produce several responsive documents in JPMC’s possession, and repeatedly stated that JPMC had no additional responsive documents. OFAC ultimately provided JPMC with a list of multiple responsive documents that OFAC had reason to believe were in JPMC’s possession based on communications with a third-party financial institution. This prompted JPMC to correct its prior statements that the bank possessed no additional responsive documents and to produce more than 20 responsive documents. JPMC did not voluntarily self-disclose the apparent violation of the RPPR to OFAC. The base penalty for this apparent violation was $250,000.

And in spite of that apparent obstruction, TurboTax Timmeh Geithner’s agency still treated Jamie Dimon’s disloyal company leniently because of what they called JPMC’s “substantial cooperation.”

OFAC mitigated the total potential penalty based on JPMC’s substantial cooperation,

According to Bloomberg’s count, the Fed lent this disloyal company $68.6B after banksters like Jamie Dimon crashed the economy.

During and after the period JPMC took that money, it financed trade with Iran, tried to hide the Khartoum deal, and financed more trade with Sudan (though it sent money to Cuba and sent Iran 32,000 ounces of gold, now worth $55 million, before taking our money, in 2006). Some of this trading with the enemy was reported internally to “JPMC management and supervisory personnel;” at least some of this wasn’t the work of rogue employees.

This is the kind of MOTU that Obama considers an ally.

Marcy has been blogging full time since 2007. She’s known for her live-blogging of the Scooter Libby trial, her discovery of the number of times Khalid Sheikh Mohammed was waterboarded, and generally for her weedy analysis of document dumps.

Marcy Wheeler is an independent journalist writing about national security and civil liberties. She writes as emptywheel at her eponymous blog, publishes at outlets including the Guardian, Salon, and the Progressive, and appears frequently on television and radio. She is the author of Anatomy of Deceit, a primer on the CIA leak investigation, and liveblogged the Scooter Libby trial.

Marcy has a PhD from the University of Michigan, where she researched the “feuilleton,” a short conversational newspaper form that has proven important in times of heightened censorship. Before and after her time in academics, Marcy provided documentation consulting for corporations in the auto, tech, and energy industries. She lives with her spouse and dog in Grand Rapids, MI.

23 replies
  1. rugger9 says:

    This needs to be broadcast, loudly, about where the loyalties of the multinationals really are.

    This is what jail time was invented for.

  2. ReaderOfTeaLeaves says:

    @scribe–high five!
    I needed a chuckle.

    Here’s hoping for Wikileaks doc that fill out this picture.
    Layer HFT on this crap… Jeebuz! After all, banks are now hedge funds.

    JPMC is certainly making the inner logic of neoliberal capitalism in the post-Soviet, networked world obvious.

  3. bmaz says:

    Damn. Good thing none of the implications from Holder v. HLP were involved here, cause then Jamie and his bank might be in real trouble. Or not.

  4. emptywheel says:

    @bmaz: Like the way half of our national security punditry is with MEK? Oh wait, Mr. Chiquita’s DOJ doesn’t porosecute MOTUs for materially supporting terrorists.)

  5. jo6pac says:

    Does anyone know the difference between a fine and a penalty according IRS tax code? Is one of them tax deductible for corp.?

    Thanks in advance.

  6. Wapiti says:

    Just curious, when was the last time one of these corporation-people was actually charged with a crime and prosecuted? How do they manage jail time?

  7. jo6pac says:

    @bmaz:

    Thanks, I had a good time at Laguna Seca Sunday, great weather. F-1 this weekend with out fuax and on a real race truck;)

  8. marly says:

    Moral agony ay, i crave tell matter in the manner of this still didnt be the subject of duration of one’s life, may i repost this Jamie Dimon’s Assembly Fined $88.3 A thousand thousand with regard to Commercial accompanying the Arch-fiend |

  9. nonames says:

    these five countries – cuba, n korea, iran, sudan, liberia – are they the same countries that don’t have a rothschilds/imf owned central bank cartel?

    maybe that’s why they are portrayed as the enemy? i heard iraq and japan had thought about changing their reserve currency, and ironically had terrible weather which postponed their plans.

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