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Ex-Credit Suisse bankers guilty of mortgage fraud

AFP · 2 Feb 2012, 09:10

Published: 02 Feb 2012 09:10 GMT+01:00

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Two former Credit Suisse executives on Wednesday pleaded guilty to falsely inflating subprime mortgage-related bond prices as the US housing market tanked, authorities said.

The Manhattan US attorney general and the FBI said that fraud charges were filed against the two men, David Higgs and Salmaan Siddiqui, who worked in the investment banking division of the Swiss bank.

Fraud charges were also filed against another former Credit Suisse employee, Kareem Serageldin, who was the global head of structured credit in the department's securities business.

Higgs and Siddiqui each pleaded guilty to one count of conspiracy to falsify books and records and commit wire fraud, the statement said.

Each face a maximum sentence of five years in prison and a fine of at least $250,000.

The two men are cooperating with the government's investigation, it said.

The defendants were charged with jacking up the prices of asset-backed bonds, which comprised subprime residential mortgage-backed securities (RMBS) and commercial mortgage-backed securities (CMBS) in Credit Suisse's accounts.

Serageldin, Higgs and Siddiqui were able to secure significant year-end bonuses for themselves through the alleged fraud since bonus amounts were largely based on trading books' profitability, officials said.

"While the residential housing market was in free fall, and shock waves were reverberating throughout the economy, these defendants decided they were above the rules of the market and above the law," said Preet Bharara, the Manhattan US attorney general.

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"As alleged, they papered over more than a half billion dollars in subprime mortgage-related losses to secure for themselves a big payday at the same time that many people were losing their homes and their jobs."

The fraud took place between late 2007 and early 2008, as the collapsing US housing bubble sent millions of home mortgages into default and wiped off hundreds of billions of dollars in value from mortgage backed securities widely held by banks and other institutional investors.

In March 2008 Credit Suisse announced if was restating its 2007 year-end earnings with a $2.65 billion write-down, a large portion of it related to the fraud.

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2012-06-15 15:44:22 by stonewall jack
Update . June 15h.. - 2012. The following sent to ----312 Lords.------- House of Lords.( inc. Lord Myners.) The following sent to ----649.M.P’s--------House of Commons. Full story plus all documentation sent to 640.M.P’s ------- House of Commons. 460. Lords.-------House Of Lords. BANK - PARTNERS IN CRIMES. Pictet & Cie Bank. Ivan Pictet. Nicolas Pictet. Charles Pictet. Jacques de Saussure. Jean – Francois Demole. Renaud de Planta. Philippe Bertherat.. Pictet & Cie.- claim they are the “Rolls Royce”of Swiss banks. Swiss Banks or more correctly Swizz banks. Swizz. ---- “ a great disappointment.” or a “ fraud.” Fraud. ---“ an intentional deception or dishonesty.”— “a crime.” Crime. ---“ an act committed or omitted in violation of a law.” Serious Crimes . Conspiring to pervert the Course of Justice. Perverting the Course of Justice. Contempt of Court. Pictet & Cie Bank –Partners –(1996—2012 )- guilty. Peters &Peters – Partners.— (1999---2012 )- guilty. The bank and it’s officials/lawyers deliberately withheld crucial documents requested under a High Court order. The bank and it’s officials/lawyers deliberately withheld evidence from the Police, and one of it’s account managers Susan Broadhead gave a false witness statement . Another one of it’s managers Nicholas Campiche ( Now Head of Pictet – Alternative Investments.) concocted a letter pretending to be a client and closed his account. The senior partner (Ivan Pictet.) sought to have numerous documents destroyed,along with those copies held in their London office’s of Pictet Asset Management. Initially stating that they were forgeries then their lawyers Peters & Peters – Monty Raphael .Q.C.–and the barrister Charles Flint.Q.C. later had to admit in Court that the documents were genuine. British Parliament. Hansard .29th March 2007. Barry Sheerman .M.P.—quote. ---------“ Constituents of mine have lost £2 million through fraud. The fraudster used Pictet & Cie - - a French Bank - - and Pictet Asset Management to back the fraud being perpetrated.”” (1) It is a criminal offence for a bank to knowingly act for an undischarged criminal bankrupt in so far as it seeks to assist that criminal bankrupt in the fraudulent movement of monies. ( Money Laundering.) (2) It is a criminal offence for a bank to lie to the police and the bankrupts trustee in bankruptcy in so far as any knowledge of, or dealings with the bank was refuted . (3) A bank can be guilty of Contempt of Court if it fails to comply fully with the Courts order for discovery .
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