Ex-Credit Suisse bankers linked to '$2bn fraud' in Mozambique

Ex-Credit Suisse bankers linked to '$2bn fraud' in Mozambique

Three former bankers at Credit Suisse have been arrested over their alleged role in a US$2bn fraud scheme connected to firms in Mozambique, according to authorities in New York.

The three ex-employees of the international Swiss-based bank were released on bail in London following their arrest yesterday. Authorities in America are seeking their extradition. 

US investigators are alleging the men, identified as Andrew Pearse, Surjan Singh, and Detelina Subeva, have links to fraudulent loans totalling $2bn to state-run companies in Mozabique. The former finance minister of Mozambique has also been arrested, in addition to a businessman from Lebanon, by the District Court in New York.

The US authorities are accusing Pearsee, Singh and Subeva of conspiring to defraud investors.

'Bribes and kickbacks'
The court's indictment alleges that through a series of financial transactions undertaken between 2013 and 2016, more than $2bn was borrowed through fraudulent loans underwritten by the Mozambican government.

In a statement, Credit Suisse clarified: "No action has been taken against Credit Suisse. The indictment alleges that the former employees worked to defeat the bank's internal controls, acted out of a motive of personal profit, and sought to hide these activities from the bank."

The court's indictment said the five men, "intentionally diverted portions of the loan proceeds to pay at least $200m in bribes and kickbacks to themselves, Mozambican government officials and others."

Author spotlight

Christopher Copper-Ind

Christopher Copper-Ind is editor-in-chief of International Investment. Before this, he was editorial director of The Business Year, from 2014 to 2017.