Andrew Pearse, Surjan Singh and Detelina Subeva have been indicted by prosecutors in New York for helping to arrange over $2 billion in loans that were guaranteed by the government of Mozambique, according to court documents unsealed on Thursday.
The loans were supposed to be used on maritime projects in Mozambique. But prosecutors allege that at least $200 million of the proceeds were used as bribes and kickbacks to the bankers, government officials and others.
Pearse and Singh, who were managing directors at Credit Suisse (CS), were arrested on Thursday in London, along with Subeva, a former vice president at the Swiss bank, according to prosecutors.
Manuel Chang, the former finance minister of Mozambique, has also been charged in connection with the scheme. US prosecutors said he was arrested on December 29 in South Africa.
The indictment reveals how the bankers allegedly worked to circumvent internal compliance rules at Credit Suisse earlier this decade, leading the bank to approve the loans despite red flags raised during its review process.
Prosecutors said the bankers failed to report critical information to compliance staff at Credit Suisse, and removed specific loan conditions without approval.
"No action has been taken against Credit Suisse," a spokesman for the bank said in a statement.
"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 spokesperson added.
According to the indictment, Pearse and Subeva left Credit Suisse in 2013, while Singh remained at the lender until 2017.
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