Julien Grout, the former JPMorgan employee accused of conspiring to hide billions of dollars' worth of losses made by the infamous "London Whale" trader, has been granted the right to appeal against the way his case was brought by the Financial Conduct Authority.
He has obtained permission from the High Court to bring his judicial review complaint against the FCA, which he claims did not allow him the time or ability to adequately defend himself, Grout's lawyer confirmed to IBTimes UK.
Grout states the regulator denied him due process when it accused him of helping the infamous trader, Bruno Iksil, to hide vast legal losses. Grout also claimed to be "readily identifiable in findings which were meant to be anonymous" and therefore was not conspiring.
The regulator alleges that Grout inflated credit derivatives portfolio prices to hide losses related to the $6.2bn (£3.7bn, €4.5bn) financial scandal in JPM's London investment office.
Regulators have already fined the bank $1bn over the London Whale scandal, citing weak compliance and risk controls.
However, Bruno Iksil, the French JPM trader based in London who made the enormous bad bets, was not charged by prosecutors because the trades were legal.
US prosecutors contend that there were subsequent attempts by Grout and another former JPM colleague Javier Martin-Artajo to cover up the losses - something both men deny.
In September 2013, Grout was indicted in the US on charges including securities fraud, wire fraud and conspiracy.
French citizen Grout and Martin-Artajo are considered fugitives by the US government as they did not appear to face trial over charges arising from the scandal. Martin-Artajo, who lives in Spain, has been fighting extradition.
Martin-Artajo has filed a similar suit to Grout and is waiting for an outcome while another former JPM colleague, Achilles Macris, has won the right to challenge the FCA's findings.