J.P. Morgan, Fleet May Be Charged in Probe

J.P. Morgan Chase & Co. and FleetBoston Financial Corp. were notified that they may be charged with illegally demanding excess fees for shares in initial public offerings during the Internet boom, a person familiar with the situation said.

The National Assn. of Securities Dealers alerted both banks that it plans to pursue an enforcement case, the person said. Securities regulators have been investigating for two years whether Wall Street firms taking companies public solicited kickbacks from investors at a time when stocks often would triple on the first day of trading.

A J.P. Morgan official acknowledged that the firm had been notified about potential charges but declined to comment. A Fleet spokesman also declined to comment.