The probe is at an early stage as the agency scrutinizes whether the New York-based bank complied with all rules and regulations when it took on Ocean Leonid Investments Ltd. as a client, according to people familiar with the matter, who requested anonymity as the information isn’t public. The entity was recently suspended by Dubai’s financial free zone.
Bloomberg News reported on Oct. 24 about Ocean Leonid’s role as a hedge fund with offices in London, Dubai and Geneva that’s overseen by Shamkhani. JPMorgan, ABN Amro Bank NV and Marex Group Plc were among the lenders that have offered the firm leverage, Bloomberg reported.
Spokespeople for JPMorgan, the US Treasury and Ocean Leonid declined to comment. Shamkhani didn’t respond to a written request for comment sent to his lawyer.
An Ocean Leonid representative previously said in response to the Bloomberg News investigation that the company categorically rejects the allegation that Shamkhani is involved in or oversees the entity. A lawyer for Shamkhani also previously denied that his client had any relationship with Ocean Leonid.
People familiar with the matter said there’s no obligation for JPMorgan to exit the client relationship because neither Shamkhani nor the company appear on any sanctions lists. The US Treasury is primarily interested in Shamkhani’s activities, though the possibility of bank compliance gaps is also a consideration, the people said.
