JPMorgan Securities pays $3.25 million for failing to stop high-risk leveraged trading
EA
Emerson Ashworth
Bitcoin ETF · Apr 11, 2026
Source: The Digital Ledger Data Terminal
Customers of JPMorgan Securities (JPMS) suffered steep losses after being forced to liquidate a significant portion of their holdings. The losses followed a series of margin calls triggered when leveraged positions declined in value during a spike in market volatility in March and April 2020.
JPMS is now paying a $3.25 million fine to the Financial Industry Regulatory Authority (FINRA) for failing to reasonably supervise a former broker. FINRA alleges the broker recommended an unsound investment strategy between January 2016 and April 2020 involving large concentrated positions in high-yield securities using leverage.
According to the regulator, the broker used discretion without written authorization. JPMS failed to take action in response to red flags regarding this activity. JPMS has agreed to the costiulations of the Letter of Acceptance, Waiver and Consent without admitting or denying the accusations. JPMS violated FINRA Rules 3110(a) and 2010. The firm is censured and fined $3,250,000.
Bitcoin ETF
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