Credit Suisse fraud arrests, U.S. Seeks To Extradite 3 Ex-Credit Bankers.
The scandal started with surveillance and tuna fishing, and ended with the cratering of Mozambique’s credit rating. On Thursday, three ex-Credit Suisse Group AG bankers were arrested in London and face possible extradition to the U.S. on charges related to bribery of officials in Mozambique, according to The Wall Street Journal.
U.S. Justice Department prosecutors say the bankers, along with the former finance minister of Mozambique and an executive at Privinvest Group, an Abu Dhabi-based holding company, committed fraud connected to some $2 billion in loans to finance fake projects meant to benefit Mozambique, according to court documents filed with the U.S District Court for the Eastern District of New York.
Investors, including American companies such as Franklin Templeton Investments and AllianceBernstein Holding L.P., stand to lose money, according to the Journal. Additionally, the court documents alleged that millions of dollars in bribes and kickbacks passed through U.S. bank branches.
The bankers are Andrew Pearse of New Zealand, Surjan Singh of the U.K. and Detelina Subeva of Bulgaria, according to the grand jury indictment.