According to DealBook, JPMorgan Chase (JPM) is a little too family-focused when handling its official business in China. Federal authorities recently opened an investigation to determine if the mega-bank hired the children of powerful Chinese officials to help secure additional business in the nation. The DealBook interviewed a legal expert, who had the following response to the potential scandal:
“While the hire of a son or daughter itself is not illegal, red flags would be raised if the person hired was not qualified for the position, or, for example, if a firm never received business before and then lo and behold, the hire brought in business,” said Michael Koehler, an expert on the corrupt practices act who is an assistant professor at the Southern Illinois University School of Law.
