NY prosecutor: 'London Whale' charges a warning

Associated Press SHARE

By CHRISTINA REXRODE, LARRY NEUMEISTER and MARCY GORDON, Associated Press

NEW YORK (AP) — A New York prosecutor says financial companies need to create more honest employee cultures to avoid the kind of crimes he says were carried out by two former JPMorgan Chase & Co. workers in London.

U.S. Attorney Preet Bharara made the comment Wednesday as he announced conspiracy charges against Javier Martin-Artajo (hah-vee-EHR' mahr-TEEN' ahr-TAH'-hoh) and Julien Grout in a fraud that ultimately cost the nation's largest bank more than $6 billion.

The two men are not in custody. They worked in London last year when prosecutors say they falsified bank records to cover up the losses. The prosecutor says companies need to pay closer attention to the cultures they create to prevent these kinds of frauds.

The bank spokesman declined comment. Lawyers for the men did not return messages.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.