Burford v JP Morgan Chase Bank - $18 million + Variable Prepaid Forward VPF Award
In October 2012, the Oklahoma District Court in Tulsa, OK ordered JP Morgan Chase Bank to pay the Burford Trust $18,122,644 plus attorneys' fees and punitive damages to be determined. The award compensates the Trust for the diminution in value resulting from JP Morgan engaging in a series of variable prepaid forward contracts with the Trust. Dr. McCann testified at the hearing that the VPFs were high cost, opaque and not properly characterized in the presentations and that investment of the VPF proceeds in a municipal bond fund with interest paid to the income beneficiary virtually guaranteed that the Trust's Exxon-Mobil stock position would eventually be fully covered by the VPFs and ultimately sold off. Mr. Meyer testified about the pressures to sell in-house products and services without regard for the interests of the Trust beneficiaries.