Javier Martin-Artajo, Bank Fraud, New York 2012

BANKING SCANDAL ROCKS WALL STREET: Javier Martin-Artajo Charged with Bank Fraud in New York 2012

A shocking new indictment has been unsealed in a Manhattan federal court, charging Javier Martin-Artajo, a former J.P. Morgan executive, with allegedly orchestrating a massive bank fraud scheme that cost the bank millions of dollars.

According to the indictment, Martin-Artajo, 50, of London, England, and Julien Grout, 35, of Paris, France, allegedly falsified records and made false statements to conceal the size of J.P. Morgan's losses on a series of mortgage-backed securities.

The alleged scheme, which took place from 2011 to 2012, resulted in Martin-Artajo and Grout attempting to cover up losses of approximately $6.2 billion in the bank's London office.

Martin-Artajo was charged with one count of conspiracy to commit wire fraud and one count of wire fraud, both of which carry maximum prison sentences of 20 years. Grout was charged with one count of conspiracy to commit wire fraud and one count of wire fraud, both of which carry maximum prison sentences of 20 years.

The indictment alleges that Martin-Artajo and Grout used a complex scheme to conceal the bank's losses, including the creation of fake records and the submission of false statements to J.P. Morgan's risk management team.

A spokesperson for J.P. Morgan stated that the bank is cooperating fully with the investigation and is committed to upholding the highest standards of integrity and transparency.

Prosecutors say that the case highlights the need for greater oversight and regulation of the banking industry to prevent similar scandals from occurring in the future.

The case is expected to go to trial in the coming months, with Martin-Artajo and Grout facing potentially decades in prison if convicted.

Source: https://www.justice.gov/usao-sdny/pr/charging-documents-us-v-javier-martin-artajo-and-us-v-julien-grout