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JPMorgan Traders Face Criminal Charges for 'London Whale' Losses

Joe Mont | August 14, 2013

The “London Whale” may have escaped prosecution – at least for now – but two of his former colleagues at JPMorgan Chase face federal charges and sanctions by the Securities and Exchange Commission.

Javier Martin-Artajo and Julien G. Grout, two former traders at JPMorgan Chase & Co., are accused of fraudulently mismarking investments in a multi-billion dollar portfolio they managed, known as the Synthetic Credit Portfolio (SCP), in order to conceal hundreds of millions of dollars in mark-to-market losses. They are also accused on knowingly making false statements in reports and documents filed with the SEC.

The charges are related to massive losses blamed in large part on Bruno Iksil, a trader who earned his nickname from the size of the trades he orchestrated at JPMorgan Chase's Chief Investment Office (CIO), an arm that managed...

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