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London bankers arrested over '$2bn fraud scheme'

In an indictment filed in a New York federal court, Andrew Pearse, 49; Surjan Singh, 44; and Detelina Subeva, 37, were charged with conspiring to violate US anti-bribery law and to commit money laundering and securities fraud, according to spokesman John Marzulli.

The three men have been released on bail in London while the US seeks their extradition.

Prosecutors also charged former finance minister of Mozambique Manuel Chang and a negotiator Jean Boustani with diverting $200mn from $2bn in loans to state-owned companies in the African nation.

The US is seeking to extradite Mr Chang, who was arrested and detained in South Africa last week.

Mr Boustani, a Lebanese citizen who worked for an Abu Dhabi-based contractor of the Mozambique companies, was arrested at John F Kennedy Airport in New York on Wednesday.

Credit Suisse 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 defendants could not be reached for comment.

According to the indictment, three state-owned companies were created to borrow more than $2bn in loans between 2013 and 2016. The loans were guaranteed by the Mozambique government.

The money was to be used for “coastal surveillance”, aid for tuna fishing and shipyards.

“In reality, the defendants created the maritime project as fronts to enrich themselves and intentionally diverted portions of the loan proceeds to pay at least $200 million in bribes and kickbacks to themselves, Mozambican government officials and others,” the indictment said.

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