WASHINGTON (Reuters) - The U.S. Federal Reserve said on Thursday it was barring former JPMorgan Chase & Co Managing Director Timothy Fletcher from the industry for life over his role in a China hiring program for which the bank was fined $264 million in 2016.
The Fed alleged that Fletcher had “improperly administered” the program to hire relatives of Chinese officials “in order to obtain improper business advantages for the firm.” The Fed said Fletcher consented to the prohibition.
Fletcher, who had worked at JPMorgan’s Hong Kong unit, could not could immediately be reached for comment.
In 2016 the bank agreed to pay a total of $264 million to the U.S. Securities and Exchange Commission, the Justice Department and the Fed, to resolve the allegations its hiring program had violated the U.S. Foreign Corrupt Practices Act.
The Fed said on Thursday Fletcher had “engaged in unsafe and unsound practices, breaches of fiduciary duty, and violations of law.”
The regulator said it was also requiring Fletcher to cooperate in any pending or potential enforcement action against other individuals who are or were affiliated with the firm.
Reporting by Michelle Price; Editing by Richard Chang and Tom Brown