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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