Former JPMorgan Chase trader Javier Martin-Artajo was arrested in Madrid, almost two weeks after U.S. prosecutors charged him with trying to hide trading losses that cost the bank more than $6.2bn last year.
Bloomberg News reports that he turned himself in Tuesday morning after being contacted by investigators, a Spanish police official said.
His passport has been confiscated pending extradition proceedings, a spokeswoman for the National Court told reporters Tuesday.
'The arrested person is presumed responsible for manipulating and inflating the value of positions in the synthetic credit portfolio of his firm with the aim of achieving specific objectives of daily losses and gains', Spanish police said in a statement Tuesday.
Martin-Artajo, 49, oversaw trading strategy for the synthetic portfolio at JPMorgan’s chief investment office in London, while Grout was a trader who worked for him.
They are charged with conspiring to falsify securities filings from March to May of 2012. The U.S. sought to keep the charges secret while arrests were attempted before unsealing them on August 14th.
In the meantime, Reuters reports that the banker has been released from custody, according to a Spanish court source.
Martin-Artajo, who will not be allowed to leave Spain under the terms of his release and who will have to appear in court every 15 days, has told a Spanish court he is not willing to be extradited to the United States, the source said.