SEC drops claims against 2 bankers linked to White

The U.S. Securities and Exchange Commission yesterday dismissed claims alleging that two former JPMorgan Chase & Co. municipal bond bankers had an undisclosed arrangement with Philadelphia power broker Ronald A. White to help them win city business.

Administrative Law Judge James T. Kelly said Charles LeCroy and Anthony Snell never had an understanding with White under which he would help them get city bond work in exchange for a $50,000 payment.

LeCroy and Snell pleaded guilty in 2005 in the City Hall corruption case to two counts of wire fraud on charges of cheating JPMorgan of $50,000, by submitting a fake invoice to pay White for legal services on a bond issue for which he did no work. LeCroy served three months in jail, while Snell served 90 days house arrest. Both men were banned from the securities business.

Kelly found that White didn't have any communication in exchange for, or with the understanding of, receiving the $50,000 payment and was surprised to hear he would be getting the payment. Kelly concluded that White did not advocate on behalf of JP Morgan on two pending deals after he learned the payment was coming. White died of cancer in 2004. - Bloomberg News