Santander, Spain  - A court in the northern Spanish city of Santander has ordered the release of suspected swindler Jose Perez Diaz, dubbed the Spanish Madoff, who was captured in Mexico after 18 years on the run, the court announced Tuesday.

The charges against Perez Diaz, known as Pepe el del Popular, 57, had come under the statute of limitations, the court said.

Perez Diaz was one of Spain's most wanted fugitives, with media referring to him as an "early Madoff" - after confessed US financial fraudster Bernard Madoff.

The former bank manager is suspected of defrauding more than 300 clients of the equivalent of some 50 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, where he was detained at the US embassy on coming to apply for a visa on March 23.

The Banco Popular said it would appeal against the court decision not to try Perez Diaz. (dpa)