Madrid  - A court in the northern Spanish city of Santander said Thursday it would seek the extradition of suspected swindler Jose Perez Diaz who has been arrested in Mexico after being on the run for 18 years.

Perez Diaz, known as Pepe el del Popular, 57, was one of Spain's most wanted fugitives, with media referring to him as an "early Madoff" - after confessed US financial fraudster Robert Madoff.

The former bank manager is suspected of defrauding more than 300 clients of the equivalent of some 49 million dollars while heading a branch of Banco Popular in Santander.

Perez Diaz allegedly ran a parallel bank, promising clients high returns on their deposits.

He has been working as a company representative in Mexico, in the capital of which police finally tracked him down on Monday, press reports quoted Spanish police and the Spanish embassy in Mexico as saying.

Perez Diaz' alleged crimes did not come under the statute of limitations until 2012, the court said. He faces up to 15 years in prison.

The Banco Popular has reimbursed clients who lost money in the scam. (dpa)