Ex-Credit Suisse bankers arrested in $2bn fraud scheme

Three former Credit Suisse Group AG bankers were arrested Thursday in London in connection with a $2 billion fraud scheme, according to a statement by the U.S. Department of Justice.

The U.S. has charged the bankers, with engaging in bribes and kickbacks of at least $200 million to enrich themselves and Mozambique government officials.

The arrests came five days after former Mozambique finance minister Manuel Chang was arrested in South Africa as part of the same criminal case, which was brought by federal prosecutors in New York.

The men have been released on bail in London while the US seeks their extradition. The scheme allegedly involved loans to state-owned companies in Mozambique. Two others, including the country's former finance minister, have also been arrested.

The former employees of the Swiss investment bank were arrested in London on Thursday. The men - Andrew Pearse, Surjan Singh, and Detelina Subeva - were charged in an indictment issued by a US District Court in New York.

The indictment says that through a series of financial transactions between approximately 2013 and 2016, more than $2bn was borrowed through loans guaranteed by the Mozambican government.

It said over the course of the transactions, the co-conspirators acted to defraud investors. They created maritime projects as fronts to raise money to enrich themselves, and "intentionally diverted portions of the loan proceeds to pay at least $200m in bribes and kickbacks to themselves, Mozambican government officials and others," the indictment read.

In a statement, Credit Suisse said the three former employees had been accused by US authorities of "circumventing our internal controls" in a fraud connected to the Mozambican government.

"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," it said.