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Arrest warrant issued for JPMorgan's Mexico chief in alleged fraud case

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Arrest warrant issued for JPMorgan's Mexico chief in alleged fraud case

A Mexican judge has signed an arrest warrant for Eduardo Cepeda, JPMorgan Chase & Co.'s country head for Mexico, after real estate developer BVG World accused him of fraud related to a loan granted to BVG in 2007, Reuters reported, citing a statement from BVG.

BVG, which received an $87 million loan from JPMorgan in May 2007, said it had agreed to place properties into a trust controlled by the bank to serve as guarantees for the loan. The real estate developer claims it reached a deal in 2012 under which the bank would sell the properties and use the proceeds as payment for the loan, while returning any remaining funds to BVG.

In a criminal complaint filed against the bank, BVG's lawyers are now alleging that JPMorgan never planned to dispose of the assets in the trust, the newswire reported. BVG has also accused Miguel Angel Barbosa, another employee at the bank, of fraud.

In a statement, JPMorgan said it has full confidence in Cepeda and that the company is working on a response to the complaint.

"The accusations have no merit. We are working with our lawyers to respond to this demand and for justice to be served," JPMorgan said, adding that neither Cepeda nor Barbosa have been arrested yet.

JPMorgan operates in Mexico through J.P. Morgan Grupo Financiero SA de CV.