NEW YORK (Reuters) - JPMorgan Chase & Co <JPM.N> is engaged in talks with U.S. prosecutors in a last-minute effort to settle a case that was to be filed on Tuesday, accusing the bank of violating U.S. laws in its sale of mortgage bonds in California, according to sources familiar with the matter.

The case, which was to be filed by U.S. prosecutors in the Eastern District of California, deals with the bank's sale of bonds backed by subprime mortgages and other risky home loans between 2005 and 2007.

A spokesman for the bank, Brian Marchiony, declined to comment.

(Reporting By Aruna Viswanatha in Washington and Emily Flitter and David Henry in New York; Editing by Gerald E. McCormick)