Andrew Pearse, former managing director of Credit Suisse Global Financing Group, pled guilty to wire fraud conspiracy. Pearse further admitted that he conspired to defraud investors out of $2 billion in loans.
Criminal Conspiracy Charges
Pearse, a New Zealand national, agreed to prosecution in the U.S. Pearse is the second Credit Suisse employee who confessed to conspiring with corporate and government officials from Mozambique obtain $2 billion in state-backed loans and use $200 million of proceed for kickbacks and bribes.
Pearse Had Co-Conspirators
Detelina Subeva, ex-Credit Suisse vice president and co-conspirator of Pearse, also pled guilty and is facing charges for money laundering and wire fraud. Other co-conspirators facing charges are Surjan Singh, ex-Credit Suisse banker, Manuel Change, Mozambique's former finance minister, and Jean Boustani, the former lead salesman of Privinvest Group, an Abu Dhabi-based shipbuilder.
Services and Equipment Used to Cover the Scheme
According to the indictment, from 2013 to 2016, Mozambique agents took out $2 billion in state-backed loans and sold them to investors globally, including in the U.S.. During this time, Credit Suisse entered into contracts with Privinvest to provide surveillance services and equipment and other shipyard projects as a cover to involve Mozambique officials in the scheme and to buy them off.
Pearse further admitted that Iskandar Safa, Privinvest CEO, in exchange for Pearse’s assistance in securing the loans, had wired him millions of dollars in illegal kickbacks and payments.
Credit Suisse Managing Director Faces Up to 20 Years in Prison
Pearse was released on bail at $2.5 million, an amount secured by his personal property, and permitted to return to the U.K. until September 3, and is required to check in with his lawyers once a week until sentencing. He could face up to 20 years in prison for his crimes and be subject to a $2.5 million forfeiture order.
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