Friday, October 19, 2012

J P MORGAN MISTREATS CUSTOMER'S TRUST (Sequel)


NYT - Oklahoma Tulsa County District Court Judge Linda G. Morrissey declared J. P. Morgan Chase  must pay $18 million for breaching fiduciary duties managing a trust of Carolyn S. Burford.   Ms Burford died in 1996, leaving a rich trust for JP Morgan to manage.  This particular  trust was established in 1955 by Ms. Burford's mother and father who had founded the Skelly Oil Company.  The District Judge believed J P Morgan had used some of the trust's proceeds to invest in the bank's own trust, thereby  "double-dipping" its fees.  The Court admitted it was a convoluted case but the bank had violated its customer's trust by using trust money to invest in another trust for its own benefit.

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