Fraud accused can be extradited

Kareem SerageldinA former Credit Suisse executive can be extradited to the United States to face fraud charges, a court has ruled.

Kareem Serageldin is alleged to have distorted the value of mortgage securities while working at the banking giant during the financial crisis.
Prosecutors claim that the 39-year-old conspired with two of his employees to hide the deteriorating condition of the housing market in 2007 in order to keep the value of bonds based on subprime mortgages artificially high and thereby fattening their bonuses.

Serageldin, a US citizen living in London, was slated to receive more than seven million dollars in compensation before the company learned about the alleged fraud and withheld 5.2 million dollars of his pay.

He appeared at Westminster Magistrates Court, with a court spokesman saying his extradition had been ordered and the case sent to Home Secretary Theresa May for approval.

Serageldin, the former global head of structured credit at Credit Suisse, was arrested in September last year. He has been charged with conspiracy, falsifying books and records, and wire fraud in the US.

The charges carry a potential penalty of 45 years in prison.

Serageldin was released on bail pending the approval of his extradition, the court confirmed. His lawyers Corker Binning declined to comment after the hearing.

The alleged fraud, which prosecutors described last year as "a tale of greed run amok", was blamed for a portion of a 2.65 billion dollar (£1.64bn) write-down Credit Suisse announced in March 2008.

Two other Credit Suisse traders pleaded guilty to conspiracy charges in cooperation deals with prosecutors in February 2012. At the time, prosecutors urged Serageldin to return to the US and answer the charges against him.
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