JPMorgan Chase to Pay $410 Million to Michigan, California Electricity Ratepayers
After a call for an investigation from Congressman Dan Kildee, JP Morgan Chase has agreed to pay $410 million in civil penalties and paybacks to ratepayers in Michigan and California after the company allegedly engaged in manipulative energy trading schemes costing taxpayers in both states tens of millions of dollars.
The settlement with the Federal Energy Regulatory Commission comes after Kildee, a member of the House Financial Services Committee, called for an investigation in May into the nation's largest bank and the alleged trading schemes.
In a statement, Kildee said the "settlement hold JPMorgan Ventures Energy Corp. accountable for their deliberate schemes that cheated Michigan and California ratepayers out of million of drivers."
Under the consent agreement, JPMorgan Chase will pay a civil penalty of $285 million to the U.S. Department of Treasury and disgorge $125 million in unjust profits to ratepayers.