Ex-Credit Suisse Executive Pleads Guilty to Inflating Value of Mortgage Bonds

[stevenleser]

Source: New York Times

A former senior trader at Credit Suisse Group pleaded guilty on Friday to charges that he fraudulently inflated the value of mortgage bonds as the housing market collapsed, becoming one of the highest-ranking Wall Street executives to admit to crimes related to the 2008 financial crisis.

Kareem Serageldin, the former Credit Suisse trader, admitted to mismarking their positions to avoid losses in their investment portfolio at the end of 2007. He appeared in Federal District Court in Manhattan a week after being extradited from Britain.

During the court hearing, Mr. Serageldin, 39, said that after discovering that members of his team were fudging the value of its bond portfolio, he made the fateful decision to participate in the fraud rather than put an end to it.

Read more: http://dealbook.nytimes.com/2013/04/12/ex-credit-suisse-executive-pleads-guilty-to-inflating-value-of-mortgage-bonds/

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Looks like we have at least one investment banker going to jail for the fraud that led to the financial crisis.

[OnyxCollie]

1. Just a bad apple. nt

[russspeakeasy]

2. There will be a memo in his "permanent" file.

Other than that.......probably a promotion.

[SunSeeker]

4. Actually, this is going to cost him (although obviously not as much as it cost our country).

From the article:

"Mr. Serageldin, the former global head of structured credit in Credit Suisse’s investment banking division, pleaded guilty to a single count of conspiracy to falsify books and records. The charge carries a maximum sentence of five years. His sentencing is set for Aug. 2.

Credit Suisse rescinded Mr. Serageldin’s stock award after uncovering the fraud. He agreed to forfeit about $1 million — the approximate after-tax amount of his cash bonus."

[SunSeeker]

3. Good. Put him away for a good long time.