That’s key for employers. Executives at Jefferies and PJT were aware that Sykes and Dowling had been swept up in the messaging probe last year, and hired them after due diligence, according to people with knowledge matter.
Spokespeople for those firms, Brean Asset Management and JPMorgan declined to comment on the personnel decisions. The three executives or their representatives also had no comment.
The bank settled with the SEC and the Commodity Futures Trading Commission, admitting to lapses. Authorities haven’t sanctioned any individuals.
JPMorgan ousted only a few executives over the inquiries, but it disciplined many others—sometimes lowering their bonuses. The SEC also warned that it’s opened additional inquiries into other financial firms. The early reaction from JPMorgan’s competitors suggest that those who get punished might still find a second chance elsewhere.
To be sure, ousters can leave a lasting mark on brokerage-industry personnel records, available on the Financial Industry Regulatory Authority’s BrokerCheck service.
Sykes’s file there shows he was “terminated for violating the firm’s communication policy by moving several internal business communications from a surveilled approved electronic communication channel to an unapproved electronic communication channel, and for the inappropriate content of certain communications.”
Koo’s records say he “used a third-party social media application for internal business communications.” It adds that there was “no known customer harm.”
Dowling’s BrokerCheck report currently shows only that he left JPMorgan and joined PJT.
This article was provided by Bloomberg News.