An Indian-origin banker Surjan Singh 44-year-old, is among three former Credit Suisse bankers arrested for their alleged role in a $2 billion USD scam connected to state-owned firms in the impoverished nation of Mozambique.
According to US authorities, the three ex-associates Andrew Pearse, 49; Surjan Singh, 44; and DetelinaSubeva, 37 skimmed at least US$200 million from secret $2 billion loans from the Mozambique government to fund fraudulent development projects in the African nation.
These three ex-associates were charged in an indictment in Brooklyn, New York federal court with conspiring to violate U.S. anti-bribery law. They also charged to commit money laundering and securities fraud, according to spokesman John Marzulli. But they have been released on bail in London while facing extradition to the US on the charges.
Manuel Chang(The former finance minister of Mozambique) has also been charged in connection with the scandal.
The US indictment says three state-owned companies borrowed more than USD 2 billion through loans guaranteed by the Mozambican government. A series of financial transactions between approximately 2013 and 2016 was made for a loan.
the co-conspirators acted to defraud investors by claiming that the companies created to undertake naval projects were “fronts” for the accused to enrich themselves and the people involved.
It was also revealed that the money borrowed was transferred to a company, Privinvest, in Abu Dhabi rather than to Mozambique.
The US authorities further alleged that the defendants defrauded misled foreign donors particularly in the United States about Mozambique’s creditworthiness.
Subeva was the vice-president at the Swiss investment bank and other two, Pearse and Singh were managing directors at Credit Suisse.
In a statement, Swiss investment bank Credit Suisse said ‘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,’