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Dropbox Co-Founder Claims JPMorgan Advisor Cost Him Over $225M

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2024-10-07 04:00:09

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Dropbox co-founder Arash Ferdowsi filed a lawsuit Wednesday alleging that an advisor at J.P. Morgan Private Wealth Advisors steered him into “highly improper” investments that caused him over $225 million in damages.

Ferdowsi asks the court to allow him to pursue a Financial Industry Regulatory Authority arbitration against J.P. Morgan Private Wealth Advisors, J.P. Morgan Securities and advisor Arif Ahmed without interference from the lawsuit’s two defendants — JPMorgan Chase Bank and the Federal Deposit Insurance Corp. as receiver for the failed First Republic Bank.

“These investments were selected for no legitimate investment purpose, but rather because they allowed JPM Wealth to extract over $40 million in hidden fees that it then shared with Ahmed,” Ferdowsi and his revocable trust allege in the complaint filed in U.S. District Court for the Northern District of California.

“Ahmed steered Ferdowsi into complex, low-performing investment vehicles with exorbitant embedded fees that were fifteen times higher than the advisory fees that Ferdowsi and Ahmed had agreed upon,” the billionaire entrepreneur alleges in the lawsuit.