FINRA has suspended a former J.P. Morgan rep for 18 months and fined him $10,000 for allegedly engaging in a check-kiting scheme.
The regulator accused Jon DeBow of writing 38 checks totaling $46,280 from two personal J.P. Morgan bank accounts that it claims did not have sufficient funds to cover the checks. DeBow allegedly wrote the checks from one of the accounts, deposited them into the other account and then immediately withdrew a portion or the entire amount of the deposited checks, according to FINRA’s recent disciplinary filing.
“DeBow knew at the time the checks were deposited that he did not have sufficient funds to cover the checks, and he acted to obtain funds from the bank,” FINRA charged.
The regulator noted that shortly after the checks were returned for insufficient funds, DeBow deposited funds into his bank accounts to cover the deficit.
DeBow did not return a voice message left at Ramirez Asset Management, where he works as a senior vice president of marketing for the firm’s institutional fixed income business. In his settlement with FINRA, DeBow neither admitted nor denied the charges, but consented to an entry of FINRA’s findings.
DeBow worked for J.P. Morgan Investment Management in New York from October 2002 to April 2015, when he was discharged, according to his BrokerCheck report. He was also simultaneously employed by and registered with J.P. Morgan Institutional Investments.
Michael Fusco, a spokesman for Chase Wealth Management, declined to comment.