Two former employees of JP Morgan Chase have been charged with concealing the size of the investment bank’s $6bn trading loss last year.
Javier Martin-Artajo, 49, and Julien Grout, 35, and their co-conspirators were accused on Wednesday of “artificially increasing the market value of securities to hide the true extent of hundreds of millions of dollars of losses”, according to court papers filed by US prosecutors.
Martin-Artajo oversaw JP Morgan’s trading strategy in London, while Grout recorded the value of the soured investments.
The pair were charged in federal criminal complaints with conspiracy to falsify books and records, commit wire fraud and falsify Securities and Exchange Commission (SEC) filings…They also were charged separately in an SEC civil complaint…
The Wall Street Journal’s website reported that US prosecutors had reached an agreement with Bruno Iksil, a former JP Morgan trader who executed the giant trades and who was known as the “London whale”, in which he would not be criminally prosecuted for his conduct.
Iksil has agreed to fully cooperate with the investigation by US authorities as part of the deal, according to documents filed on Wednesday by the US attorney’s office quoted by the newspaper.