August 15, 2013

Ex-JPMorgan employees charged with fraud

Bloomberg News

NEW YORK - Two former JPMorgan Chase employees were charged Wednesday by U.S. prosecutors with attempting to conceal trading losses at the largest U.S. bank last year as part of a probe of its $6.2 billion loss on derivatives bets.

Javier Martin-Artajo, a former executive who oversaw the trading strategy at the bank's chief investment office in London, and Julien Grout, a trader who worked for him, were charged with conspiracy, wire fraud and making false filings.

The two men engaged in a scheme to falsify securities filings between March 2012 and May 2012.

JPMorgan Chief Executive Officer Jamie Dimon characterized the $6.2 billion loss as "the stupidest and most-embarrassing situation I have ever been a part of." First disclosed in May 2012, the bad bets led to an earnings restatement, a Senate subcommittee hearing and probes by the Securities and Exchange Commission and Britain's Financial Conduct Authority.

Dimon, 57, whose own pay was cut in half, pushed out senior executives including former Chief Investment Officer Ina Drew, who oversaw the London unit where the loss took place.

 

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