NEW YORK – The U.S. on Wednesday charged a pair of former JPMorgan Chase traders with fraud in connection with the 2012 $6.2 billion “London Whale” trading losses.
Federal prosecutors filed criminal charges against Javier Martin-Artajo and Julien Grout, alleging they kept false records on the trades, committed wire fraud and submitted false U.S. securities filings.
The charges are the first criminal case to stem from last year’s mammoth trading loss. The Securities and Exchange Commission also filed parallel civil charges against the two men alleging securities fraud.
A third ex-JPMorgan official involved in the trades, French national Bruno Iksil — originally identified as the London Whale responsible for the trades — was cleared of criminal responsibility after cooperating with prosecutors.