U.S. banking regulators have permanently banned a former banker for his role in a scheme that involved hiring the friends and relatives of influential foreign officials and prospective clients in violation of U.S. anti-corruption laws.
The U.S. Federal Reserve Board banned Timothy Fletcher, a former managing director at a subsidiary of J.P. Morgan Chase & Co., from the banking industry for his role in administering a hiring program that aimed to curry favour with foreign officials through internships and job opportunities.
The Fed says that Fletcher consented to the order, which also requires him to cooperate in enforcement action against other individuals involved.
In 2016, the Fed fined the bank US$61.9 million for operating the program. The bank also agreed to pay approximately US$105 million in disgorgement and US$25 million in interest to settle allegations with the U.S Securities and Exchange Commission, and to pay a US$72-million penalty as part of a non-prosecution agreement with the U.S. Department of Justice and the U.S. Attorney’s Office for the Eastern District of New York.