Madrid - Mexican police have arrested a suspected Spanish swindler, dubbed an "early Bernard Madoff," who had been on the run for 18 years, press reports said Thursday.

Jose Perez Diaz, known as Pepe el del Popular, 57, was one of Spain's most wanted fugitives.

The former bank manager is suspected of defrauding more than 300 clients of about 36 million euros (49 million dollars) while heading a branch of Banco Popular in the northern city of Santander.

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

He was working as a company representative under a false identity in Mexico, when police finally tracked him down, reports quoted Spanish police and the Spanish embassy in Mexico as saying.

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