Ex-JPMorgan banker pleaded not guilty for bribery charges over 'princeling' hires

A JP Morgan executive director wanted the investment bank to make an exception for the son of a potential client, Kerry Logistics Network Ltd, she testified on the second-day bribery trial of JP Morgan’s ex-banker.

52-year-old Catherine Leung Kar-cheung pleaded not guilty of hiring Ang Ren-yi, the son of Karry Logististics’ chairman Ang Keng-lam, on January 19, 2010 to influence Kerry Logistics to choose JP Morgan to work on its initial public offering. 

Leung is the former managing director of J.P. Morgan Securities (Asia Pacific) Limited (JPMS), a subsidiary of JPMorgan Chase & Co. She left the company in 2015 after serving the company for about 20 years.

Hu Tian-zong, Executive Director of JPMS, testified in District Court as a witness today that when the bank’s annual recruitment scheme ended in January 2010, she sent an email to her superior in hopes that the bank can make an exception to recruit Ang.

Hu told Deputy District judge Emily Cheung Sau-kwan that it is because Ang’s resume is “very strong” and that he obtained a 3.3 GPA from Harvard University’s Engineering concentration. His result is slightly lower than the company’s requirement of 3.5 GPA.

Ang is officially employed by the bank in February 2010 as an analyst through their client-referral program, his nominator is Catherine Leung. 

“The aim of the client-referral program is to generate client’s goodwill,” Hu said.

The client-referral program allows senior staff such as Leung to refer clients’ relatives to be employed for a short-term post at the bank, Hu added, usually, candidates of the program are offered with either a three-months training program or a one-year employment contract.

In order for candidates of the referral program to be officially employed, they must declare their relationship with the bank’s client. As well as receiving approval from three parties including their nominator, legal and compliance department, and human resource department.

Hu said the academic requirement of the referral program is lower than the bank's regular annual recruitment, as candidates of the referral program are only employed for the short-term.

Hu added the bank has recruited an employee who only obtained 2.8 GPA through the referral program before.

Leung was charged with two counts of offering an advantage to an agent. 

Her trial continues tomorrow.