NEW YORK, Sept 26 London's Metropolitan Police
arrested a former Credit Suisse trader on Wednesday in
connection with a scandal dating back to 2007 in which
mortgage-backed securities traders were caught trying to cover
up losses on their books, a source familiar with the matter told
The former employee, Kareem Serageldin, was the last
remaining person allegedly involved in the scandal to face
charges. Two other employees pleaded guilty in U.S. federal
court earlier this year to criminal fraud charges.
U.S. prosecutors said traders in New York and London for
Credit Suisse Group AG hid $540 million of losses,
according to charges filed in the case.
Prosecutors earlier this year indicted Serageldin, a U.S.
citizen, at the same time as the other traders, but he remained
A spokeswoman for Serageldin's lawyer, Sean Casey of Kobre &
Kim in New York, declined to comment.
The source said that Serageldin, who supervised the other
traders in the case, was expected to appear before a British
court on Thursday to face extradition proceedings. There are no
other arrests expected in the case.