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Three ex-employees of the Credit Suisse have been arrested for a $2 billion fraud scheme in association with firms in Mozambique, according to U.S. officials.
The project aims to build a trading platform and is supported, among others by billionaire VC fund Tim Draper.
The men have been discharged on bail in London while the US looks for their extradition.
The plan supposedly included loans to state-possessed organizations in Mozambique.
Two others, including the nation’s former minister of finance, have likewise been arrested.
The ex-employees of the Swiss Credit bank were captured in London on Thursday.
The 3 arrested men which names are – Andrew Pearse, Surjan Singh, and Detelina Subeva – were charged in a prosecution issued by a US District Court in New York.
The prosecution says that through many transactions that happened between roughly 2013 and 2016, more than $2bn was obtained through credits ensured by the Mozambican government.
It said throughout the transactions, the co-schemers acted to defraud investors.
To raise the money and enrich themselves they created maritime projects, and “intentionally diverted portions of the loan proceeds to pay at least $200m in bribes and kickbacks to themselves, Mozambican government officials and others,” the prosecution noted.
In an announcement, Credit Suisse said the three previous workers had been blamed by US authorities for “circumventing our internal controls” in a fraud scheme associated with the Mozambican government.
“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 bank said.
Scandals of our traditional financial institutions pop up every day.
It is time to change this old system with a better one.