JP Morgan Gets Off Easy In Latest Trader Fraud

Usually when trading fraud happens, it costs the bank tens, or even hundreds, of millions of dollars. So JP Morgan should be counting itself lucky that when 17-year employee Terrence Gumbs sold 385 million euro on behalf of a client without the client’s permission the resulting loss was only $6 million. Gumbs explained the move by saying he was trying to make up for an earlier loss of $300,000. The Connecticut resident faces a maximum of 20 years in prison and a fine of $250,000, or twice the amount gained or lost by the commission of the fraud, whichever is greater.
JP Morgan Salesman Charged with Fraud [Reuters UK]

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