As part of investigations stemming from the financial crisis, New York Attorney General Eric Schneiderman alleged that investors were deceived about bonds backed by mortgages. Among other things, Wall Street firms such as Bear Stearns – now JP Morgan – not only failed to actually conduct legitimate due diligence on the risks of the mortgage backed bonds they were selling to their own clients, but actually ignored red flags and hid those red flags from their own clients. Now, years after the wrongdoing, JP Morgan appears close to paying about $10 billion to resolve the allegations of wrongdoing. Some of these funds will likely trickle back to investors, though woefully inadequate to rectify the damage done to investors. At Vernon Litigation Group, we continue to see this type of profiteering by financial firms at the expense of their own client base. Some of this profiteering is further exposed on our wealth manager attorney blog.

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