Consumer complaint received 2024-11-14 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 XXXX XXXX XXXX XXXX, CA XXXX Consumer Financial Protection Bureau ( CFPB ) XXXX XXXX XXXX XXXX, XXXX XXXX Re : Formal Complaint Against JPMorgan Chase Bank Regarding Embezzlement of Funds from Business Accounts, Violation of Anti-Money Laundering ( AML ) Regulations, and Failure to Prevent Fraud To Whom It May Concern, I am writing to file a formal and urgent complaint against JPMorgan Chase Bank ( hereinafter referred to as Chase ) regarding the embezzlement of substantial funds from multiple bank accounts belonging to my company, XXXX XXXX XXXX, and the banks gross failure to detect and prevent fraudulent transactions that violate anti-money laundering ( AML ) regulations. Between XX/XX/XXXX, and XX/XX/XXXX, the sum of {>= $1,000,000} was unlawfully transferred from my companys accounts to two shell companies and a fraudsters personal account at JPMorgan Chase. Despite multiple attempts to notify the bank of this embezzlement, Chase continued to facilitate fraudulent transactions and failed to close the accounts or return the funds. 

This complaint involves a series of criminal activities, including money laundering, embezzlement, and violations of the Bank Secrecy Act ( BSA ) and the Anti-Money Laundering ( AML ) Act regulations. As a financial institution regulated by the Financial Crimes Enforcement Network ( FinCEN ) and required to adhere to stringent AML procedures, Chase had both a legal and ethical obligation to detect, report, and prevent these crimesyet failed to take timely action. 

Background and Timeline of Fraudulent Activity : Between XX/XX/XXXX and XX/XX/XXXX, my companys accounts at XXXX XXXX XXXXXXXXXXXX XXXX XXXX XXXX XXXX  and fraudulent credit instruments opened with my stolen identity were illegally accessed, created and drained of over {$1.00} XXXX. A convicted criminal, whom I later discovered to have a history of embezzlement and prior prison sentences, facilitated this theft. This individual was an employee of my company who, without authorization or consent, transferred large sums of money from other financial institutions into his shell company and personal accounts at Chase. These funds were then promptly transferred out or to his personal account or to another of the ( at leaXXXX XXXX XXXX XXXX companies, which were used exclusively for illicit activities, including large cash withdrawals, gambling at casinos, cryptocurrency transfers, and purchases of international prepaid cards. In fact, he opened a new business in XXXX XXXX with these stolen funds. 

Additionally, Chase permitted the individual to conduct suspicious transactions, including the transfer of stolen funds to his own personal account at Chase, even after I informed the bank of the embezzlement in XX/XX/XXXX. Despite this notification, Chase allowed the accounts to remain open and continued to process transactions that were clearly indicative of money laundering until at least XXXX XXXX period of more than XXXX months after I first raised concerns. 

Alleged Violations and Breaches of Responsibility : XXXX Failure to Adhere to Anti-Money Laundering ( AML ) Requirements : JPMorgan Chase has a legal obligation under the Bank Secrecy Act ( BSA ) and FinCEN regulations to establish and enforce effective anti-money laundering controls and to report suspicious activities. These regulations require Chase to detect, monitor, and prevent illicit transactions, particularly those involving large sums of money transferred to businesses that do not engage in legitimate business activities.The fraudulent accounts at Chase were set up under suspicious circumstances with no evidence of legitimate business activity, yet the bank failed to flag the accounts or block suspicious transactions, such as : Large cash withdrawals Transfers to cryptocurrency exchanges Casino spending International prepaid card purchases Transfers to the fraudster 's personal account 2 This is a clear violation of Chases obligations under 31 U.S.C. 5318 and 31 C.F.R. 1020.320, which mandate that financial institutions implement robust customer due diligence ( CDD ) processes to detect and prevent money laundering and financial crimes. 

3 Failure to Close Accounts and Return Stolen Funds : Despite my repeated notifications to Chase regarding the fraudulent activity and clear evidence of embezzlement, the bank took no action to close the accounts involved in the fraud or return the stolen funds. This is a direct violation of the Banking Regulations and a breach of Chases responsibility to protect its customers from financial crime. As stated in the Financial Institutions Reform, Recovery, and Enforcement Act of XXXX ( XXXX ) and the Anti-Money Laundering Act of XXXX, financial institutions are required to take immediate corrective action when they are notified of fraudulent or suspicious activities. 

XXXX Failure to Prevent the Misuse of XXXX and Other Payment Systems : A significant portion of the stolen funds was transferred using XXXX, a payment system facilitated in part by Chase. XXXX transactions, by design, are instant and largely irreversible. Chase, as a primary participant in the XXXX network, has the responsibility to monitor, regulate, and prevent its misuse for fraudulent activities. Despite this, Chase failed to recognize the misuse of XXXX for money laundering purposes and did not take appropriate measures to freeze or reverse these transactions after being informed of the fraud.Under Regulation E of the Electronic Fund Transfer Act, financial institutions are required to provide protections against unauthorized transactions and to investigate complaints of fraud in a timely manner. Chase failed to meet these requirements and allowed the fraudulent transfers to continue without taking the necessary corrective actions. 

5 Unprofessional Conduct and Failure to Take Accountability : I have been in continuous communication with multiple representatives of JPMorgan Chase, including our account manager, an associate general counsel, and various customer service agents. During these interactions, I was repeatedly told that Chase could not be held responsible for the fraud and essentially pointed out that there were " legal/contractual loopholes '' protecting the bank from any accountability. This dismissive and unprofessional response is not only unethical but also constitutes an abuse of power, particularly given the obvious signs of fraud that Chase failed to address in a timely manner. 

Request for Resolution : I request the following from the Consumer Financial Protection Bureau ( CFPB ) : 1 Investigation into JPMorgan Chases failure to detect and prevent fraud, including a review of the banks compliance with AML regulations, specifically regarding the misuse of XXXX, the facilitation of illicit transactions, and the banks failure to close fraudulent accounts or return stolen funds in a timely manner. 

2 Immediate action to recover the stolen funds and return them to my companys accounts.

3 Compensation for any fees and losses that have occurred as a result of the banks negligence, including fees charged by Chase for processing fraudulent transactions, and for the emotional and financial toll this has taken on my company.

4 Public accountability for Chases failure to adhere to its legal obligations under the BSA, AML regulations, and the Electronic Fund Transfer Act.

Supporting Documentation : I have included the following supporting documents with this complaint : A detailed spreadsheet outlining the stolen funds and fraudulent transactions. 
Documentation of the convicted criminals previous record of embezzlement and fraud. 

I appreciate your prompt attention to this serious matter and look forward to a swift and thorough investigation into JPMorgan Chases failures. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation