Investing.com -- Javier Martin-Artajo, a former JP Morgan banker accused of hiding billions in losses in derivative positions held by the trader nicknamed the "London Whale," fought extradition charges on Thursday in Madrid.
Martin-Artajo, who formerly oversaw synthetic trading at JP Morgan's chief investment office in London, was indicted in the United States in 2013 for allegedly trying to hide losses on trades made by Bruno Iksil, also known as the "London Whale."
Appearing before a panel of three judges at the Spanish National Court on Thursday, Martin-Artajo argued that he should not be extradited, because the events took place in the United Kingdom, not the United States.
JP Morgan initially reported $2 billion in losses from trades involving credit default swaps (CDS) in May, 2012, but later updated the total to $6.2 billion. In August, 2013, U.S. prosecutors agreed not to bring charges against Iksil, arguing that the trades itself were not illegal. In September, 2013, JP Morgan agreed to pay $920 million to regulatory agencies in the United States and United Kingdom to settle the probe.
Then, last July, Julien Grout, another former JP Morgan employee filed an appeal in London against the UK's Financial Conduct Authority's civil findings related to the case. Grout was accused of inflating the value of JP Morgan's CDS portfolio to conceal the losses. The portfolio reportedly contained swaps known as CDX IG 9, a credit default swap index based on the default risk of several major corporations.
Both Martin-Artajo and Grout are considered U.S. fugitives and are facing securities fraud charges stemming from their roles in the scandal.
Martin-Artajo denied the charges on Thursday.
“I consider myself innocent because I could not have done this and I have not done it," Martin-Artajo said at the hearing.