The Arizona Corporation Commission ordered JP Morgan Chase & Co. to pay a $348,779 penalty Wednesday in connection with its auction-rate securities sales in Arizona.
The penalty represents Arizona's share of a $25 million global settlement negotiated by a multistate task force. The agreement marks the seventh settlement of an auction-rate securities case in Arizona since the widespread market failure last year.
The ACC found that JP Morgan Chase misled investors by marketing the investments as safe when the securities are actually subject to a complex auction process that can lead to financial loss.