Ex-Credit Suisse trader David Higgs may testify against Kareem Serageldin, the former global head of the bank’s CDO business charged in a bonus- boosting fraud scheme, U.S. prosecutors said.
Bloomberg reports that Serageldin, who worked for Credit Suisse in London, was charged last year in federal court in New York with masterminding a scheme to fake collateralized debt obligations. Higgs is a former managing director of investment banking in London who worked for Serageldin.
Higgs and Salmaan Siddiqui, a former colleague, pleaded guilty to falsifying prices tied to CDOs at Serageldin’s direction. Both men are cooperating with the U.S.
Bloomberg also reports that ex-Jefferies Managing Director Jesse C. Litvak will go on trial in February on charges that he defrauded customers of more than $2m on trades of residential mortgage-backed securities.
Litvak, 38, of New York, was arrested Jan. 28 and charged with 16 counts including securities fraud, fraud connected with the Troubled Asset Relief Program and making false statements to the federal government.
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