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JPM Fair Fund

Frequently Asked Questions


Background

1. What are the details of the SEC’s settlement with JPMorgan Chase & Co?

JPMorgan Chase & Co. (“JPM”) paid $200 million in civil money penalties to settle the U.S. Securities and Exchange Commission’s (the “SEC” or “Commission”) action finding that JPM violated federal securities laws when JPM failed to disclose accurately in public filings made with the SEC the true amount of trading losses it suffered in the first quarter of 2012, and the effectiveness of its disclosure controls and procedures.  The JPMorgan Chase Non-Disclosure Fair Fund (“JPM Fair Fund” or “Fair Fund) was established by the SEC to distribute the civil money penalties paid by JPM to harmed investors in accordance with the terms of the Distribution Plan approved by the Commission on February 12, 2015.

Eligibility

2. Who is eligible to participate in the distribution of the Fund?

You may be eligible for compensation from the JPM Fair Fund if you:

 

a.

Purchased Eligible Securities between April 13, 2012 and May 10 2012, inclusive, and held the shares of Eligible Securities through May 20, 2012; or

b.

Purchased Eligible Securities between April 13, 2012 and May 10, 2012, inclusive, and sold the shares of Eligible Securities between May 11, 2012 and May 20, 2012, inclusive; or

c.

Purchased Eligible Securities between May 11, 2012 and May 20, 2012, inclusive, and held the shares of Eligible Securities through May 20, 2012.
3. What securities must I have purchased to be eligible to participate in the recovery?

The following security is an Eligible Security under the terms of the Distribution Plan:

 

Security Symbol CUSIP ISIN
JPMorgan Chase & Co. Common Stock JPM 46625H100  US46625H1005
4. Who is not eligible to participate in the distribution of the JPM Fair Fund?

You are not eligible to participate in the distribution of the Fair Fund if you are or were:

 

a.

The Respondent or any person who served from January 1, 2012 through May 20, 2012 as an officer or director of JPM¹, and any assigns, creditors, heirs, distributees, spouses, parents, dependent children or controlled entities of any of the foregoing persons or entities;

b.

A defendant in SEC v. Martin-Artajo & Grout, 1:13-cv-05677-GBD (SDNY);

c.

A person who, as of the claims filing deadline, has been the subject of criminal charges related to the violations found in this case or any related Commission action;

d.

The Administrator, its employees, and those persons assisting the Administrator in its role as the Administrator;

e.

An affiliate, assign, creditor, heir, distributee, spouse, parent, dependent child or controlled entity of any of the foregoing persons or entities described in (b)-(d) above; or

f.

An assignee of another person’s right to obtain a recovery in the Commission’s action against JPM, provided, however, that this provision shall not be construed to exclude those persons who obtained such a right by gift, inheritance or devise.
[1] An “officer” excluded under this paragraph is any officer of JPM (not including any JPM subsidiaries or affiliates) required to file a Form 3, 4, or 5 with the Commission pursuant to Section 16 of the Securities Exchange Act of 1934 to report transactions in Eligible Securities during the 2012 calendar year.
5. I was a JPM employee and acquired shares through an employee benefit program. Do these shares qualify me for a payment?

The eligibility of the shares acquired through an employee benefit program will depend on which program you participated in.  The eligibility of certain JPM employee benefit plans is detailed below.

  • JPMorgan Chase & Co. 401(k) Savings Plan:

The trustee of the JPMorgan Chase & Co. 401(k) Savings Plan (the “Savings Plan”) will file a claim on behalf of the Savings Plan with respect to shares of JPM common stock purchased during the relevant period through the Savings Plan. Individual Savings Plan participants do not need to take any action in connection with this claim. Any settlement proceeds received by the Savings Plan will be allocated to participants by the trustee.

Please note that if you received shares of JPM common stock through an in-kind distribution or a transfer or rollover to an IRA from the Savings Plan during the period from April 13, 2012 through May 20, 2012, you must file a separate claim for these shares.

  • JPMorgan Chase Employee Stock Purchase Plan:

Shares purchased pursuant to the JPMorgan Chase Employee Stock Purchase Plan (the “Plan”) will generally qualify for a claim; and claims are to be filed by the individual participants in the Plan. Based on the information that has been provided to us by JPMorgan, there were no purchases of JPM common stock pursuant to the Plan during the relevant period from April 13, 2012 to May 20, 2012.  However, dividends received on shares of common stock held pursuant to the Plan were reinvested during the relevant period.  Participants who conducted such dividend reinvestments are eligible to submit a claim.

  • JPMorgan Chase & Co. Deferred Compensation Program:

Interests acquired in the JPMorgan Chase & Co. Deferred Compensation Program will not qualify for a claim. Participants in this program did not actually purchase shares of JPM common stock on a U.S. exchange or market during the relevant period from April 13, 2012 to May 20, 2012, as required by the terms of the Distribution Plan.

  • JPMorgan Chase & Co. Long Term Incentive/Value Share Programs & Option/Stock Appreciation Rights Programs:

Participants in these programs will not qualify for a claim. Shares of JPM common stock acquired by exercising an option or stock appreciation right will generally not be eligible under the terms of the Distribution Plan.

Any participants that held shares of JPM common stock directly (outside of an employee plan) must file a separate claim relating to those shares.

6. Do the shares I purchased by reinvesting dividends qualify for recovery?

Yes, shares purchased by reinvesting dividends are potentially eligible for recovery. Note that you must provide documentation for each purchase, including the date of purchase and the number of shares.  If fractional shares were purchased, you may round to the nearest whole share.

7. What is considered the official date of purchase (or sale) of my shares of stock?

The “Trade Date” is the official date to use as the date of your transaction for stock purchases and/or sales.  Many broker transaction statements provide both a “Trade Date” and a “Settlement Date”.  The Trade Date is the correct date to use for purposes of completing a Claim Form.  The method, or timing, of payment for the shares are not factors in determining eligibility.

8. I inherited (or received as a gift) shares of JPM common stock. Am I eligible to file a claim?

The eligibility of a claim is dependent upon when the shares of JPM common stock were originally purchased.  The receipt of shares of JPM common stock by gift or inheritance, for example, does not constitute a purchase for purposes of determining eligibility.  If the original owner of the JPM common stock purchased the shares during the relevant period, you may be eligible to recover for those inherited or gifted shares.

You must include copies of broker statements or other documentation evidencing the original purchase of the JPM common stock with your claim.  In addition, you must provide documentation of the transfer of the shares to you, such as the broker statements for the period in which the transfer occurred.  In the case of an inheritance, you should attach copies (please do not send originals) of any legal documentation showing you are the legal recipient of these shares.

If the original owner purchased the shares of JPM common stock outside of the relevant period, the shares would not be eligible for recovery.

The Claim Form

9. How do I apply to participate in the JPM Fair Fund? How do I file a claim?

If you would like to apply to participate in the JPM Fair Fund, you must submit a completed Claim Form that is postmarked on or before September 4, 2015.  You may submit your Claim Form in one of the following ways

 

a.

You can file your claim using our online claims system here. You will enter all of your information directly into the online Claim Form, scan your supporting documentation, and upload the supporting documentation to your Claim Form.  If you are unable to scan your supporting documentation, you can mail the supporting documentation directly to the Administrator at the address provided herein.  If mailing supporting documentation, you will be directed to print off a cover sheet from the website to include with your mailing.  This will ensure your documentation is included with the appropriate claim.

b.

If you prefer to complete and mail a paper claim form, you can download and print one here. Read and complete all required information on the Claim Form, attach all necessary supporting documentation and mail the completed form to:

JPM Fair Fund
P.O. Box 6976
Syracuse, NY 13217-6976

You can ask the Administrator to mail you a Claim Form by calling toll free (866) 578-3658, sending an email request to info@jpmsecfund.com or by writing to the address included above. Remember to provide your complete name and mailing address. Upon receipt, read and complete all required fields in the Claim Form, attach all necessary supporting documentation and mail the completed Claim Form to the Administrator.

10. What is the deadline for submitting the Claim Form?

The Claim Form must be postmarked on or before September 4, 2015.

11. Do I need to submit supporting documents with my Claim Form?

Yes. You must provide with your completed Claim Form documentation of (a) the number of shares you held as of the close of trading on April 12, 2012, if any; (b) all purchases and sales of JPM common stock between April 13, 2012 through May 20, 2012, inclusive; and (c) the number of shares you held as of May 20, 2012, if any.  Please be sure the documentation confirms the details provided in your Claim Form.

All documentation must include adequate identifying information (i.e., your name and account number must appear on all documentation submitted). Handwritten modifications to the documentation or self-generated schedules or statements will not be accepted.  Please do not send the originals of your supporting documentation; be sure to provide copies.  Documentation should list the security, type of transaction, date of transaction, number of shares, and total amount of the transaction.

The types of documents that should be submitted to support your claim include:

  • monthly brokerage or other investment account statements;
  • trade confirmation slips; or
  • a signed letter from your broker on firm letterhead verifying the information you have provided in the Claim Form.

If you do not submit documents with your Claim Form to verify your holdings and transactions in JPM common stock during the relevant period, we will be unable to validate your claim.  Deficiency Notices detailing any deficiencies in your claim will be mailed at a later date and you will have an opportunity to submit additional supporting documentation at that time.

12. What if I cannot provide all the supporting documents with my Claim Form?

It is very important that you provide documentation in support of the holdings and transactions listed on your Claim Form.  Failure to do so may invalidate your claim.  If you cannot locate these documents within your personal records, contact your broker or other account representative and request copies of the documents you need.

13. Will my information be kept confidential?

Yes. The Administrator will protect the privacy of the information you provide. The information in your Claim Form and supporting documents will be used solely for the purpose of processing your claim.  For more information, see our Privacy Policy located on this website.

14. Why does the Claim Form ask for my phone number and email address?

The Administrator will likely need more information in order to process your Claim Form.  The Claim Form asks for your phone number and email address so you can be contacted more promptly if additional information is needed.

15. Why does the Claim Form ask for my Social Security Number (“SSN”), Tax Identification Number (“EIN”) or Passport ID Number?

The Administrator needs this information to process your claim during the claim administration process. These identifying items are necessary for a number of reasons, including to enable the Administrator to ensure payments from the Fair Fund are not directed to prohibited participants listed on the U.S. Treasury’s Office of Foreign Asset Control’s (OFAC) records.

We recognize the importance of keeping your personal information secure, and we do everything under our control to ensure this data is protected.  This personal information will only be used as necessary to administer your claim during the claim administration process.

16. I purchased shares of JPM common stock, but they were held in my broker’s name. Who should complete the Claim Form?

The beneficial owner of the shares of JPM common stock should complete the Claim Form.  If you purchased the stocks but they were registered in your broker’s name, you are the beneficial owner.

17. I held shares of JPM common stock in more than one account. Should I file a separate Claim Form for each account?

You should include all of your transactions in JPM common stock during the relevant period in one Claim Form, even if they were purchased or held using different brokerages or representatives.  However, if you held shares of JPM common stock in accounts that were different account types or held under different legal capacities (e.g., an individual account and a partnership account), you should complete a separate Claim Form for each.

18. If I was a co-owner of JPM common stock, do we both need to sign the Claim Form?

Yes, all owners must sign. However, if your co-owner is deceased, please read the next question below.

19. What should I do if the investor has died? How should the Claim Form be completed?

If the beneficial owner of the shares of JPM common stock has died, and would have otherwise met the eligibility requirements of the JPM Fair Fund, the estate or the legal heirs may be eligible for a distribution.  The executor or administrator of the estate should sign and submit the Claim Form denoting his or her title (for example, “Executor of the Estate of John Doe”) on the signature page.

If no estate was opened, or the estate is now closed, each legal heir of the investor should submit an individual claim form and sign his/her name on the Claim Form, and add the word “Heir”.  In either circumstance, you must attach copies (please do not send originals) of any legal documentation providing evidence you are the executor or administrator of the estate, or the legal heir of the deceased.

If you had a co-owner of the shares of JPM common stock who has died, you should sign the Claim Form yourself, and send copies of documents that show:

 

a.

The co-owner has died (for example, a copy of the death certificate); and

b.

You are legally entitled to the co-owner’s interest in the shares of JPM common stock.

After Your Claim Form Is Submitted

20. Will I be notified whether my claim was received by the Administrator?

If you submit your claim using the on-line claim filing option, you will receive an electronic confirmation and corresponding claim ID.

If you mail a Claim Form directly to the Administrator, please utilize a mailing option or courier service that will provide you with proof of delivery and receipt of the Claim Form by the Administrator.  The burden to prove receipt of the claim by the Administrator will be upon the potential claimant.

21. Will I be notified whether my claim is accepted, rejected or deficient?

Yes.  A Determination Notice will be mailed to all claimants that filed a Claim Form.  The Determination Notice will provide each claimant with the status of their claim: approved, deficient or ineligible.  If your claim is deficient, we will provide an explanation of the deficiency and an instruction regarding what is required to cure the deficiency.  If your claim is determined to be ineligible, the Determination Notice will provide the reason for such denial.  All information submitted in response to a Determination Notice, either attempting to cure a deficient claim or requesting reconsideration of a rejected claim, must be received by the Administrator no more than 30 days after the date of your Determination Notice.

22. How much will I be paid if I am eligible?

Until all claims have been fully processed, it is not possible to determine the amount of any individual payment because the amount will depend on a variety of factors; including, the number of eligible claims processed, the total dollar amount of the eligible claims, the amount of JPM common stock that you purchased, and the timing of your purchase and sale transactions.

If your claim is determined to be eligible, the amount of your recovery will be based on the loss methodology that was approved by the Commission.  The artificial inflation amounts were developed by an expert economist and approved by the Commission.  According to the loss methodology, the eligible loss-per-share amount is broken down as follows:

 

Date

Inflation-per-share Amount

For JPM common stock shares purchased/sold between April 13, 2012 and May 10, 2012

$4.84

For JPM common stock shares purchased/sold between May 11, 2012 and May 20, 2012

$1.31

For JPM common stock shares purchased/sold after May 20, 2012

$0.00

 

Your eligible loss will be computed for all purchases and sales of JPM common stock during the relevant period, and then added together to arrive at your total eligible loss amount.  Please note that your eligible losses will be used to determine the amount of your distribution payment from the Fair Fund; however, if the aggregate losses of all claimants exceeds the amount of the Fair Fund, the Fair Fund will be distributed to eligible claimants pro rata based upon the ratio of the eligible losses of each claimant to the aggregate eligible losses of all eligible claimants.

You can read a more detailed explanation of the plan of allocation and how distribution payments are calculated in the Distribution Plan, which is available on this website.

23. Will I have to pay taxes on my payment?

We cannot provide tax or other legal advice on this matter.  It is your responsibility to determine and pay any federal, state or other taxes you may owe on recoveries you receive from the Fair Fund.  Therefore, we recommend that you consult your tax advisor.  The JPM Fair Fund does not include a pre-judgment interest component, so IRS 1099-INT Forms will not be issued in connection with any payments from the JPM Fair Fund.

24. What should I do if I move after I submit my Claim Form?

If you move after you file your Claim Form, please be sure to provide your new address to ensure that we are able to contact you in the event you are eligible to receive a distribution payment.  You can update your address by calling (866) 578-3658, sending an email to info@jpmsecfund.com, or writing to:

JPM Fair Fund
P.O. Box 6976
Syracuse, NY 13217-6976

Effect of Submitting a Claim

25. Am I giving up any legal rights by filing a Claim Form?

No.  By submitting a Claim Form, you are not forfeiting any rights or claims you may have against JPMorgan Chase & Co., its past and present directors, officers, advisors or agents.

26. Is this case a class action?

No.  This Fair Fund settlement is the result of an enforcement action brought by the U.S. Securities and Exchange Commission.

Institutional Filers

27. I am an institutional filer; may I file my claim electronically?
The Administrator has established a procedure to enable institutional filers to submit claims electronically for its clients.  The electronic filing template is available here.

Getting More Information

28. I still have some questions. Who can I contact?

If you have additional questions, you may:

  • Call toll-free (866) 578-3658 (Domestic) or (315) 671-5779 (International), Monday through Friday between 8:30am and 5:00pm, Eastern Standard Time;
  • Send an email to us at info@jpmsecfund.com; or
  • Write to:

JPM Fair Fund
P.O. Box 6976
Syracuse, NY 13217-6976

Ready to Begin the Claims Process? Start Today.

Have all the information you need? Ready to file your claim? Start today on paper or online.

Begin Claim