UPDATE 1-Former Credit Suisse trader Serageldin gets 30 months in jail
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By Nate Raymond
NEW YORK Nov 22 (Reuters) – A former Credit Suisse Group AG trader was sentenced to 30 months in prison on Friday for his role in a scheme to artificially inflate subprime mortgage bond prices.
Kareem Serageldin, the bank’s former global head of structured credit, pleaded guilty in federal court in New York in April to conspiracy to falsify books and records.
U.S. District Judge Alvin Hellerstein in Manhattan also ordered Serageldin to pay a fine of $ 150,000. The sentence was lower than the up to five years in prison requested by prosecutors in the case.
Prosecutors accused Serageldin, 40, of conspiring with other Credit Suisse employees working for him to mis-mark the values of subprime mortgage-backed bonds between August 2007 and February 2008, when housing and credit conditions were worsening.
The goal, prosecutors said, was to paint a false picture that the trading book Serageldin oversaw was profitable. In total, the price manipulation contributed to Credit Suisse taking a $ 2.65 billion writedown in its 2007 year-end results, prosecutors said.
Two of his former colleagues, David Higgs and Salmaan Siddiqui, each pleaded guilty to a conspiracy charge in 2012.
The bank has not been accused of wrongdoing.
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