Kareem Serageldin, the former head of Credit Suisse’s structured credit trading business sentenced to prison for fraud, was ordered to pay more than $1m to settle an SEC lawsuit.
Bloomberg Businesweek reports that as part of Tuesday’s order by U.S. District Judge Analisa Torres in Manhattan gave Serageldin 'dollar for dollar' or full credit for the more than $1m he already paid as part of the criminal case. The decision means he won’t have to forfeit any additional money as part of the U.S. Securities and Exchange Commission’s case.
At the time he was sentenced, Serageldin also agreed to give back about $25.6m in compensation to Credit Suisse, his lawyers said.
Serageldin, 40, was sentenced in November by U.S. District Judge Alvin Hellerstein, who presided over the criminal case, to 2 1/2 years in prison for his role in a scheme to falsify the value of mortgage-backed bonds in 2007.
After the scheme was discovered, Credit Suisse conducted an internal review and took a $2.65bn write-down, according to the government. About $540m of the write-down was due to Serageldin’s trading book, the U.S. said.
To access the complete Bloomberg Businesweek article hit the link below:
image: © Tax Credits