US Probes JPMorgan’s Ties to Iranian Oil Kingpin’s Hedge Fund

  • Regulators said to look at bank’s ties to Ocean Leonid fund
  • JPMorgan is among banks that offered hedge fund leverage

The company's offices in New York.

Photographer: Michael Nagle/Bloomberg
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The US Treasury Department is examining JPMorgan Chase & Co.’s relationship with a hedge fund that’s said to be part of a network overseen by Iranian oil trader Hossein Shamkhani.

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.