Credit Suisse Exec Charged In NY Mortgage Probe

Published February 1, 2012 8:36PM (EST)

NEW YORK (AP) — A Credit Suisse executive who was once slated to receive nearly $7 million in compensation in 2007 is among three of the company's former employees to be criminally charged.

The executive — Kareem Serageldin (kuh-REEM' SEHR'-uh-jehl-dihn) — was charged Wednesday with conspiracy, falsifying books and records, and wire fraud. The charges carry a potential penalty of 45 years in prison. Authorities say $5.2 million of his pay was taken away after Credit Suisse discovered the fraud.

Two other Credit Suisse traders pleaded guilty to conspiracy charges in cooperation deals with prosecutors. Serageldin wasn't in custody. He's a U.S. citizen who lives in England.

The men were accused of artificially boosting the price of bonds linked to mortgages to boost bonuses and cover up that the U.S. housing market was collapsing.

By Salon Staff

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