A federal judge in Birmingham last week denied motions filed by two former JPMorgan bankers to dismiss a Securities and Exchange Commission suit that alleges they committed securities fraud in connection with municipal bond and swap transactions with Jefferson County, Ala.

Judge Abdul Kallon, of the U.S. District Court for the Northern District of Alabama, rejected the motions of Charles LeCroy and Douglas MacFaddin, who claimed the SEC does not have any jurisdiction over the swaps because they are not based on securities. 

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