The Hong Kong Anti-Corruption Supervisory Authority has accused former Vice President of Asian Investment Banking JPMorgan Chase of bribery for engaging Chinese "princes" with good ties as a means of getting a job in the country.
The Independent Anti-Corruption Commission announced on Thursday that it accused former MP JP Morgan Katherine Leung of bribing the logistics company's president in 2010. ICAC claims that Mrs Leung offered the job of a businessman's son to JPMorgan to help the US bank work on the company's initial public offering.
The so-called "sons and daughters" program of JP Morgan sought to hire children of some elite businessmen and government officials, often called "princes". Recruits usually joined the bank as younger staff members.
"Senior staff on or above the ranks of the Executive Director or Director, such as the Accused, can send candidates to the JPM or [JPM Securities] for the younger position of analysts or associates, "the ICAC said in a statement.
The strategy is designed to help banks get lucrative jobs in China, but such practices have also been a potential violation of the US Law on Foreign Corruption, which defends companies from paying bribes to overseas officials to win the job. In 2016 JPMorgan agreed to pay $ 264 million to resolve the investigation of this issue by the US Department of Justice.
Ms. Leung, 51, left JPMorgan in 2015. She faces two charges to offer the agent an advantage and was released on bail before appearing in court on Monday. She could not reach her for comment.
Other global investment banks – Goldman Sachs, Deutsche Bank, Citigroup, Credit Suisse and Morgan Stanley – have also been contacted by regulators regarding similar employment practices.
At that time, some Western investment banks hired some of the most powerful politicians in China. Credit Suisse, for example, once counted Ven Ruchun, the daughter of former Chinese Prime Minister Ven Jiabao, as an employee, reports the Financial Times in 2013. Ms. Ven, who passed with the English name Lili, also worked for Lehman Brothers. Last year Credit Suisse agreed to pay $ 47 million to settle the DoJ investigation of the prince's employment.
The Hong Kong Corruption Controller did not list a logistic company allegedly involved, saying only that JPMorgan Banker had spent activities during 2010 and 2011.
It is known that JPMorgan made a large number of engaged people at a time when the employment program was active, including Gao Jue, the son of the Chinese Minister of Commerce, who was later employed at Goldman Sachs. Tang Xiaoning, the son of the former bank regulator, was also hired by JPMorgan. He took over as President of the Everbright Group, one of the largest Chinese financial conglomerates.
The case of Ms. Lueng is "a historical case, which JPMorgan reached an agreement and agreed to 2016," the bank spokesman said. "We have strengthened our procedures and controls regarding employment and have strengthened the high standards of behavior that are expected of our people."