This is a shocking and disturbing story of dereliction of duty by FINRA and the SEC, and egregious, repeated misconduct by JP Morgan Chase, including the creation of false evidence by a “compliance manager” used to corrupt a FINRA arbitration in retaliation against a whistleblower.
The hair-raising expose reveals many of the flaws in the financial system that are hurting millions of investors every day, including the systematic exploitation of clients and the gross deficiencies of FINRA’s biased, pro-industry, anti-investor arbitration forum. Indeed, FINRA appears more interested in protecting its own by persisting with disciplinary action against the whistleblower yet taking little or no action against those at JPMorgan who helped create the phony evidence in an attempt to destroy the career of the adviser.
The story also highlights and confirms what Better Markets and others have argued for years: the current arbitration system is deeply unfair to investors and fundamentally broken. FINRA and the SEC should be ashamed of and embarrassed by their conduct here.