The Upper Tribunal has granted Javier Martin-Artajo, former JPMorgan Chase head of EMEA credit and equity trading who faces US criminal charges in the wake of the $6bn “London Whale” debacle, an extension to challenge the Financial Conduct Authority’s findings.
Judge Timothy Herrington concluded that whilst the importance of the 28-day statutory time limit is recognised, “it is lessened in this case because of the lack of significant prejudice to the party it is designed to protect,” referring to the FCA.
This was due to the Upper Tribunal upholding a complaint made by former JPMorgan Chase banker Achilles Macris against the FCA that which found he was unfairly identified in the FCA decision papers.
“Whilst the delay is significant, it will make no material difference to efficiency of disposing of the litigation,” stated Judge Herrington.
“Bearing in mind the public interest considerations and the fact that Mr Martin-Artajo has not been previously had the opportunity of making representations, the prejudice to Mr Martin-Artajo in not extending time clearly outweights the prejudice to the [FCA] if time is not extended.”
Judge Herrington said that in his view “it would be too severe a consequence in all the circumstances and unfair to Mr Martin-Artajo to refuse to extended time.”
He added that all further proceedings are stayed until the release of the Court of Appeal’s decision on the preliminary issue in the case of Macris v the FCA.
The case stems from a decision notice against JPMorgan Chase Bank, published by the FCA on 18 September 2013, whereby the bank was fined £137.6m as a result of trading losses incurred by the bank’s Synthetic Credit Portfolio, a trading portfolio housed within the bank’s chief investment office.
“It is clear that Mr Martin-Artajo saw the final notice upon it being published on 19 September 2013,” stated Judge Herrington.
“It is also clear that at that stage Mr Martin-Artajo advised by his lawyers, took the view that he had been identified in the final notice... and that the references were prejudicial to him as they included allegations that SCP Management was responsible for instructing SCP employees to engage in mismarking.”
Mr Martin-Artajo managed Bruno Iksil, the trader dubbed the whale over his dominant trading track record and large portfolio.
The 49-year old Mr Martin-Artajo handed himself in to police at the end of April 2013 after being contacted by investigators, almost two weeks after he was charged by US authorities alongside ex-employee Julien Grout.
