Consumer complaint received 2024-11-15 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Funds not handled or disbursed as instructed
Company: JPMORGAN CHASE & CO.
State: CA

Complaint narrative:
XXXX XXXX XXXX, XXXX XXXX XXXX XXXX, CA XXXX XX/XX/XXXX Consumer Financial Protection XXXX XXXX XXXX XXXX, XXXX XXXX Formal Complaint Against JPMorgan Chase for Failing to Recover Stolen Funds and Negligence in Account Security Dear Sir/Madam, I am writing to file a formal complaint against JPMorgan Chase, concerning the theft of funds from the business account of Ascention Brands, LLC , a company I wholly own and operate. This complaint is made with regard to the unlawful actions of a former employee, who embezzled funds from our account, and JPMorgan Chase 's failure to take appropriate action to recover the stolen funds, rectify the account security breach, and provide a resolution. The actions of JPMorgan Chase have caused significant financial harm, disrupted the operations of my business, and delayed the launch of what was a promising venture. 
XXXX. Account Information : Account Name : XXXX XXXX, XXXX Account Number : [ Provide account number ] Bank : JPMorgan Chase XXXX. The Incident : In XXXX and XX/XX/XXXX, I encountered significant difficulties accessing the business account for Ascention at JPMorgan Chase, despite being the sole owner and managing member of XXXX XXXX, XXXX. At the time, I was expecting significant payments to be deposited into the account from a contract with XXXX XXXX XXXX XXXX XXXX in XXXX XXXX contract which was expected to provide essential capital for the businesss launch. However, I discovered that a former employee, XXXX XXXX, who I later learned had a prior criminal conviction for embezzlement, had gained unauthorized access to the account and made himself the primary administrator of the account without my consent.

3. Timeline of Fraudulent Activity : XX/XX/XXXX : The account received a payment of {$2500.00}, which was immediately wired by the former employee to his personal account at JPMorgan Chase. 
XX/XX/XXXX : The account received another payment of {$3600.00}, which was also wired in full to the same individuals account. 
XX/XX/XXXX : The account received a third payment of {$7800.00}, which was similarly wired to the former employees personal account. 

XXXX. Employees Deceptive Actions : During this period, the employee repeatedly lied about the status of these payments, claiming that the funds had not been received, despite the fact that they had been wired directly into his personal account. This false information was communicated to me over several conversations, all of which I have saved in message records. Upon discovering the fraud, I immediately confronted the former employee and contacted JPMorgan Chase to notify them of the embezzlement and request that my access to the account be restored. 
XXXX. JPMorgan Chase 's Failure to Act : Despite my urgent requests, it took until XX/XX/XXXX to regain full access to the account, a delay that is well documented with apology letters from JPMorgan Chases staff for the prolonged inaction. During this time, I contacted multiple account managers and fraud representatives, asking for immediate action to reverse the fraudulent transactions. I was told repeatedly that I needed to contact law enforcement, despite already having filed reports with the XXXX XXXX Police Department, the FBI, and the Secret Servicethe FBI is now investigating the fraud. 
In the meantime, JPMorgan Chase allowed the former employee to continue laundering stolen funds through his personal account and various shell companies. These funds were spent on casinos, cryptocurrency, and international prepaid debit cards. 
XXXX. Chases Further Negligence and Delay : In XXXX and XX/XX/XXXX, after 9 months of no action, I escalated the matter with Chase. It was at this point that fraud representatives at JPMorgan Chase ( whom I struggled to identify or receive clear information from ) informed me that the " funds were depleted, '' meaning that the stolen money had already been moved and could no longer be recovered. 
Chases failure to flag or stop any of these fraudulent transactions, their inadequate communication with me regarding how to recover the funds, and their inability to provide clear instructions or forms for filing a claim only exacerbated the harm caused. 
When I finally received an explanation, it was revealed that the stolen funds had been dissipated across several channels, including cryptocurrency and shell companies, and could no longer be recovered. JPMorgan Chases claim that my complaint was untimely is baseless, as I took immediate action as soon as I regained access to the account in XX/XX/XXXX. 
XXXX. Financial Impact on XXXX XXXX, XXXX : This theft, coupled with JPMorgan Chases failure to recover the funds, has had a catastrophic impact on XXXX XXXX, XXXX. The stolen payments were critical to the businesss launch, and their loss severely delayed operations. Additionally, the failure to recover the funds directly impacted a {$10.00} XXXX valuation that was pending, based on XXXX XXXX expected revenue from contracts like the one with XXXX XXXX. The business is now facing significant financial harm as a direct result of JPMorgan Chases negligence and failure to act. 
XXXX. Legal Violations and Request for Action : JPMorgan Chases actions and inaction constitute a breach of several legal and regulatory obligations under both federal and state law, including : Failure to comply with fraud prevention and security regulations as outlined in the Electronic Fund Transfer Act ( EFTA ), which mandates that banks take reasonable steps to protect account holders from unauthorized transactions. 

Failure to implement adequate internal controls to prevent fraud, as required under the Bank Secrecy Act ( BSA ) and other regulatory standards for financial institutions. 

Breach of fiduciary duty by failing to properly manage and protect the account of a client ( XXXX XXXX, XXXX ). 

Therefore, I respectfully request the following : A full investigation into the actions of JPMorgan Chase, including their failure to promptly address and reverse the fraudulent transactions. 

Immediate recovery of the stolen funds, or compensation for the equivalent amount. 

Compensation for financial damages, including lost revenue, operational delays, and the reputational damage to XXXX XXXX, XXXX, in the amount of {$5.00} XXXX, reflecting both the immediate impact of the theft and the long-term consequences of JPMorgan Chases negligence . 

Conclusion : I trust that the Consumer Financial Protection Bureau will investigate this serious matter, hold JPMorgan Chase accountable for their failure to protect my business, and ensure that appropriate action is taken. The damage caused by this theft, and by JPMorgan Chases subsequent failure to recover the funds, has had a lasting and damaging effect on the future of my business. 
Thank you for your attention to this urgent matter. Please do not hesitate to contact me should you require further information or documentation. 
Sincerely, XXXX XXXX XXXX, XXXX XXXX

Company response to consumer: Closed with explanation