JPMorgan’s foreign bribery case – aka ‘Sons and Daughters’ hiring scheme in China - didn’t end last November when the bank agreed to pay $264 million to settle government charges that it had hired the children of Chinese leaders to win business in that nation. At the time, it was noted that some of the well-connected candidates were unqualified and often “performed ancillary work”- telltale signs of hidden bribery. The practice range from 2008 to 2013.  [See Financialish, 11/16/16] 

On Friday, 3/10/17, the Federal Reserve announced it would seek to fine and permanently bar two JPM managing directors who were integrally involved in the hiring program- Fang Fang and Timothy Fletcher. Mr. Fang would pay a $1 million penalty, and Mr. Fletcher would pay a $500,000 penalty.

FANG FANG, 51, had been JPMorgan Chase’s CEO of investment banking for China until his resignation in 2014. He had been with the bank for 12 years. He was also the ‘gatekeeper’ for JPM’s referral hiring program, which was at the center to the investigation.

TIMOTHY FLETCHER ran the JPMorgan hiring program and was head of the junior resources management group in Asia. Mr. Fletcher’s employment was terminate in 2015.