The New York Times, citing persons briefed on the matter, reported that Javier Martin-Artajo and Julien Grout are expected to be arrested in London in coming days.
Martin-Artajo oversaw JPMorgan's trading strategy in London, while Grout recorded the value of the soured investments, the newspaper reported.
A federal grand jury voted to indict both on criminal fraud charges, according to the report.
Federal investigators have concluded that Martin-Artajo directed Grout to falsify records and conceal more than $400 million in losses from their superiors at the bank, the newspaper reported.
The charges against Martin-Artajo and Grout hinge on the cooperation of Bruno Iksil, a trader at JPMorgan in London who placed the large bets that led to the loss, according to the report.
Iksil, dubbed the "London Whale," is not a target of the Justice Department or the Securities and Exchange Commission, according to a separate report in The Wall Street Journal.
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