Best Growth Stock – The New York Attorney today filed charges against three former employees of Credit Suisse in the United States accused of profiting from a fraud in relation to derivatives on mortgages “subprime” or high risk.
Two of the defendants, David Higgs and Salman Siddiqui, pleaded guilty after surrendering to the FBI, while the third, Kareem Seralgedin was awaiting processing that can be arrested in the United Kingdom, where he lives.
The three face several felony charges of conspiracy to falsify documents and bank fraud have inflated the value of derivatives on mortgages “subprime” to increase their personal bonuses, creating a hole of more than 5,000 million dollars.
This imbalance forced the Credit Suisse to lower the value of their loans in U.S. dollars 2,650 million in 2008, when the facts were known.
“When the housing market was in freefall and the economy faltered, the defendants decided they were above the market and the law,” he said in a statement the prosecutor from New York, Preet Bahr.
Bahra added that way “hid more than 5,000 billion in losses related to subprime mortgages to ensure a good income while many people were losing their home and work.”
Between late 2007 and early 2008, was the supervisor Seralgedin Higgs and Siddiqui at the offices of Credit Suisse in London and New York, where the three allegedly committed fraud until it was uncovered by the auditors of the bank.
Credit Suisse announced on February 19, 2008 that would lower some mortgage loans after discovering that its value had been handled unevenly by a group of workers who were suspended or fired.
The move to compensate those affected meant that the Swiss bank recorded in the second quarter 2008 net loss of 2,100 million francs (1,301 million), mainly because the impact of the mortgage crisis “subprime” in the U.S. .
Siddiqui Higgs and face a maximum penalty of five years imprisonment and a fine of $ 250,000 or twice the money they earned through fraud, while Seralgedin, with more charges, faces up to 25 years in jail and fined 5 million dollars.
Category: Business News