JP Morgan Chase (NYSE:JPM) has agreed to pay $153.6 million to settle charges that the bank misled investors in a mortgage-backed security as the housing market was unraveling in 2007.The Securities and Exchange Commission said that JP Morgan designed, set up and sold a collateralized debt obligation product without telling investors that a hedge fund had helped select the assets in the CDO, and had bet against more than half the assets.The hedge fund in question was Magnetar Capital, whose short position betting on the same assets it helped select for the CDO was $600 million.The SEC said in a statement that harmed investors would receive all of their money back. JP Morgan neither admitted nor denied the charges against it.JPMorgan Chase has a potential upside of 36.5% based on a current price of $40.72 and an average consensus analyst price target of $55.6.