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- Ex-Credit Suisse banker Andrew Pearse told a Brooklyn, New York jury Wednesday he hid $45 million in bribes for helping Mozambican businesses secure $2 billion worth of loans, Bloomberg reported.
- Prosecutors said a salesman for shipbuilder Privinvest led a scheme to defraud US investors by up-charging the Mozambican government and using the additional funds to bribe bankers.
- Two additional former Credit Suisse bankers are scheduled to testify and have already pleaded guilty, according to Bloomberg.
- Watch Credit Suisse trade live here.
Former banker Andrew Pearse testified to a Brooklyn, New York jury Wednesday that he and at least four other Credit Suisse employees received multimillion-dollar bribes for misleading the bank. The alleged scheme involved securing loans from 2013 to 2016 for shipbuilder Privinvest, a firm hired by the Mozambican government to assist in building a tuna fishing fleet, shipyard, and coastline surveillance project.
The testimony is part of a larger case against Privinvest salesman Jean Boustani, who prosecutors claim led a plot to defraud US investors. Prosecutors claim Privinvest leaders charged the Mozambique government higher prices for three ship projects and used the additional funds for bribes.
Lawyers representing Boustani claimed he had no involvement in the loans’ creation, and that Pearse named Boustani to soften his prison sentence.
The ex-banker said Surjan Singh and Datelina Subeva were among the former Credit Suisse staff involved in the events. Both former bankers pleaded guilty and will testify, lawyers told Bloomberg.
“They all played a role in ensuring the bank made the loans. They provided the bank with false information about Privinvest,” Pearse testified.
Pearse first pleaded guilty to wire fraud conspiracy on July 19.
Credit Suisse did not immediately respond to a request for comment.
The bank’s stock closed at $12.32 per share Wednesday, up roughly 13% year-to-date.
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