The $9 Billion Witness: Meet JPMorgan Chase's Worst Nightmare | Rolling Stone
Fleischmann is the central witness in one of the biggest cases of white-collar crime in American history, possessing secrets that JPMorgan Chase CEO Jamie Dimon late last year paid $9 billion (not $13 billion as regularly reported – more on that later) to keep the public from hearing.JP Morgan Chase Paid $9 Billion to Keep This Woman Silent About Its Crimes | Alternet
Back in 2006, as a deal manager at the gigantic bank, Fleischmann first witnessed, then tried to stop, what she describes as "massive criminal securities fraud" in the bank's mortgage operations.
Alayne Fleischmann witnessed criminal securities fraud while working as a deal manager at the bank. Part of her job was to review loans that the bank was taking over, and she began to see more and more cases where the bank was taking on loans where the individuals involved obviously could not pay.
One example: she reviewed a loan to a manicurist who claimed to have a $117,000 annual income; she calculated that she'd have to work 488 days a year to make that much money. Fleischmann and her co-workers flagged many of these loans as “stated income unreasonable for profession”; in one case in 2006, managers marked 33 percent loans in a loan sample under this category, but were effectively overturned by a Chase executive who forced them to drop the rate to less than 10 percent. Yet the bank continued to “sell...high-risk loans as low-risk securities,” despite the fact that doing so would be fraud.