Ex-Credit Suisse trader to fight U.S. extradition

Reuters News
Posted: Sep 27, 2012 8:37 AM
Ex-Credit Suisse trader to fight U.S. extradition

LONDON (Reuters) - A former Credit Suisse Group AG trader, accused by U.S. authorities over a $3 billion fraud involving subprime mortgage bonds, said he would not agree to a U.S. extradition request when he appeared in a British court on Thursday.

Kareem Serageldin, former global head of structure credit trading for Credit Suisse, was arrested on Wednesday in London where he has been since U.S. prosecutors filed charges against him earlier this year.

Appearing at London's Westminster Magistrates Court, he said he would not comply with the extradition order sought by U.S. authorities. A UK hearing to decide his case will be heard on November 28.

Serageldin, wearing a dark suit and white shirt, was granted bail but must provide a surety of 150,000 pounds ($242,200)and must wear an electronic tagging device.

He is the most senior banker charged in a scandal dating back to 2007, in which mortgage-backed securities traders were caught trying to cover up $540 million in losses on their books, prosecutors say.

Two other employees pleaded guilty in U.S. federal court in February to criminal charges of conspiracy to commit wire fraud and falsify books and records, making it the first successful U.S. prosecution of employees of a major bank involved in the subprime meltdown of 2007-08.

U.S. prosecutors have charged Serageldin with the same conspiracy counts, as well as additional charges of falsifying books and records and wire fraud. ($1 = 0.6193 British pounds)

(Reporting by Alessandra Rizzo; Writing by Michael Holden; Editing by Guy Faulconbridge)