Posted: Aug 14, 2013 12:48 PM by MSNBC News
Updated: Aug 19, 2013 11:01 AM
Federal prosecutors in Manhattan on Wednesday criminally charged two former JPMorgan Chase & Co employees with wire fraud and a conspiracy to falsify books and records related to the bank's $6.2 billion trading losses last year, according to court papers.
The charges, the first to arise from the "London Whale" trading scandal, say the two employees, Julien Grout and Javier Martin-Artajo, had deliberately tried to hide hundreds of millions of dollars in losses on trades in a portfolio of synthetic credit derivatives.
The charges are the result of an investigation into events surrounding the losses in the London division of JPMorgan's chief investment office. The losses first became public in April 2012 when it was revealed a small group of traders made outsized bets in an illiquid derivatives market and found themselves squeezed by competitors in the market.
Click here to submit a news tip to us!
Become a Facebook Fan!
Help those in need this holiday season
Win! Win! Win!
Wise Local Marketing!
Get news, weather and more on your smartphone and tablet!
Get texts for news, traffic, deals and more!
Sign up on KVOA.com for newsletters, exclusive deals, and more!
What's happening on News 4 @ 4
Stories and videos with Kristi's Kids
Check out the latest events FC Tucson has scheduled.
Let us help grow your business
Digital Channel 4.2
What's on KVOA and when!
Contact info for our department heads
KVOA's on air personalities!
Work at News 4 Tucson
Complete feeds of all KVOA.com stories
FCC Public File of Records, Reports, and More