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The U.S. Securities and Exchange Commission (SEC) claims that JP Morgan Securities bribed certain Alabama officials to hire the firm to assist with issuance of Alabama municipal bonds.  The SEC claims that JP Morgan paid more than $8 million to close friends and relatives of certain Commissioners of Jefferson County, Alabama, and that, in return, JP Morgan got $5 billion in municipal bond business from Jefferson County.Among the more intriguing allegations in the SEC’s complaint are the contents of certain tape recorded conversations:

According to the SEC’s complaint, although labeled as payments for work on the transactions, LeCroy and MacFaddin knew that these were sham transactions designed to ensure that County officials selected J.P. Morgan Securities. LeCroy and MacFaddin referred to the payments in taped telephone conversations as “payoffs,” “the price of doing business” or “giving away free money.” J.P. Morgan Securities incorporated the costs of these unlawful payments by charging Jefferson County higher interest rates on the swap transactions.This is the same securities industry that promises faithfulness and trust in handling your financial affairs.  The P.R. and marketing machines of big brokerage firms guarantee that you will not remember episodes like this one.  You will believe that a recognizable name means safety.  But nothing could be further from the truth.  The biggest firms on Wall Street are only incidentally concerned with your welfare.  They are much more interested in what your wealth can do for them.To protect what you have worked and saved for, you must do what banks do when they move cash: hire private protection.  Know everything possible about the person who has access to your nest egg.  Tens of thousands of senior citizens are now starting over with nothing because they failed to do so.