UK court approves ex-Credit Suisse trader's extradition to U.S.

LONDON Mon Jan 14, 2013 6:43am EST

Former Credit Suisse trader Kareem Serageldin arrives at Westminster Magistrates Court in London January 14, 2013. REUTERS/Suzanne Plunkett

Former Credit Suisse trader Kareem Serageldin arrives at Westminster Magistrates Court in London January 14, 2013.

Credit: Reuters/Suzanne Plunkett

LONDON (Reuters) - A British court on Monday approved the extradition of a former Credit Suisse trader to the United States, where he is wanted over a $540-million fraud dating back to the subprime mortgage crisis.

The case of Kareem Serageldin will now be sent to Home Secretary Theresa May, the interior minister, who under British law has the final say over extraditions to the United States. She is expected to give the green light for the transfer to take place.

Serageldin, 39, the Swiss bank's former global head of structured credit, is accused of artificially inflating the prices of mortgage-backed bonds between August 2007 and February 2008, when their real value was plummeting.

Two former Credit Suisse colleagues who reported to him at the time pleaded guilty in a U.S. federal court in February of last year to charges of conspiracy to commit wire fraud and falsify books and records.

The case was the first successful U.S. prosecution of employees of a major bank over wrongdoing connected to the subprime meltdown.

Serageldin's lawyer, Ben Brandon, had previously told Westminster Magistrates' Court that the ex-trader was close to reaching a plea agreement with U.S. authorities. But at Monday's hearing he made no mention of any negotiations or agreement.

Brandon did not contest Serageldin's extradition, which was approved by judge Quentin Purdy.

Under Britain's extradition procedures, May will issue her decision between four weeks and two months from now. Serageldin remains on bail until then.

(Reporting by Estelle Shirbon; editing by Stephen Addison)

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Comments (1)
jocare wrote:
I LOVE reading about snagging the bad boys. Now, what about his boss and his bosses boss and the CFO and the CEO who must have created the climate in which the bad boys could thrive? Will we EVER get them, or do they just get bonuses and swanky retirement packages for the great job they did?

Jan 14, 2013 9:40pm EST  --  Report as abuse
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