Greg Burk, a Las Vegas car dealer, says his bankers at J.P. Morgan Chase & Co. flew out to see him last year and offered to put him in what they called “the mother of all hedge funds.” Mr. Burk came to view his $5 million investment in the fund as an ugly stepchild, and regulators now are looking at whether his experience fits a pattern of J.P. Morgan inappropriately steering its private-banking clients to its own hedge-fund investment products, according to people close to the probe. ...
The US Community Futures Trading Commission ( CFTC ) is investigating JP Morgan over allegations the bank is steering its private - banking clients to its own hedge - fund investment products , without the proper disclosures . The CFTC investigation includes Highbridge Capital Management , an investment company owned by JP Morgan , as it is looking at why large proportions of Highbridge 's assets are separate from JP Morgan 's private bank assets and if this helped it stabilise during the financial crisis . JP Morgan is already in advanced talks over similar allegations with the US Securities and Exchange Commission ( SEC ) , with an expected settlement to be in the region of $ 150 m .