Kareem Serageldin, the ex-global head of Credit Suisse’s structured credit trading business, pleaded guilty to conspiracy, saying that when he discovered subordinates falsifying the value of mortgage-backed bonds in late 2007, he joined the scheme rather than stop it.
'Why did you do that ?' U.S. District Judge Alvin Hellerstein asked Serageldin Friday in Manhattan federal court.
'To preserve my reputation in the bank at a time when there was great financial turmoil in the marketplace', he said.
Bloomberg reports that Serageldin, 39, pleaded guilty to a single count of conspiracy to falsify Credit Suisse’s books and records, which carries a maximum prison sentence of five years. Serageldin is scheduled to be sentenced August 2nd.
Under a plea agreement with the government, Serageldin agreed to forfeit $1m as proceeds of the crime. Both sides agreed that federal sentencing guidelines, which aren’t binding on the judge, call for Serageldin to get from four years and nine months to five years in prison.
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