Ex-JPMorgan executive pleads not guilty to $5 million embezzlement

jueves 23 de junio de 2016 17:07 GYT
 

By Nate Raymond

NEW YORK, June 23 (Reuters) - A former JPMorgan Chase & Co executive indicted eight years ago for allegedly embezzling about $5.4 million from clients at the bank and at prior employer UBS AG pleaded not guilty on Thursday after being extradited from Argentina.

Hernan Arbizu, who fled to Argentina where he became involved in a tax-evasion probe involving the bank, entered the plea through his lawyer in federal court in Manhattan to charges including wire fraud, bank fraud and embezzlement.

In court, Assistant U.S. Attorney Sagar Ravi said Arbizu, 47, voluntarily agreed to his extradition and said prosecutors had held discussions with him about resolving the case, which could result in a plea at a later date.

U.S. District Judge Lewis Kaplan scheduled Arbizu's trial for Dec. 5. A lawyer for Arbizu declined comment after the hearing.

U.S. prosecutors had sought Arbizu's extradition since he was first indicted in 2008, the same year he was fired from JPMorgan, where he was a vice president in its private banking division. He previously worked at UBS from 2002 to 2006.

While at JPMorgan, Arbizu oversaw over $200 million of its clients' assets and was responsible for managing relationships with high-net-worth Argentine customers, according to the bank.

Prosecutors said that from March 2007 to April 2008, Arbizu initiated 12 wire transfers from clients at UBS and JPMorgan of nearly $5.38 million, almost $2.8 million of which came from a single JPMorgan account.

In lawsuits that JPMorgan filed against Arbizu in 2008 and 2009, the bank said he wired the $2.8 million to an account at UBS to conceal the millions of dollars that he had previously stolen from one of its customers.   Continuación...