JPMorgan Chase & Co. sued Hernan Arbizu, a former private banker indicted for embezzlement, seeking $2.8 million that the company says he stole from a customer's account.
Arbizu, indicted in New York, was arrested in Buenos Aires in July 2008. JPMorgan Chase sued Monday in federal court in New York. U.S. officials are still seeking his extradition, according to the banking company's complaint. From March 2007 to April 2008, Arbizu allegedly stole millions of dollars from the accounts of a UBS AG customer when he was employed there.
When the customer sought to withdraw funds, Arbizu allegedly stole $2.8 million from a JPMorgan Chase customer and wired it into the UBS account, according to the complaint.
Thefts from the two banks totaled $5.4 million, the indictment said.
"JPMorgan has fully reimbursed its customer and, accordingly, has been damaged by Arbizu's crime," the bank said in its complaint.