A plea of not guilty was entered by a former Credit Suisse trader on charges of inflating prices of subprime mortgage bonds. The amount of the inflation was at US$540 million.
After being extradited to the US from the UK by British officials, Kareem Serageldin entered his plea during his arraignment in Manhattan federal court. He is again to appear next Friday before the court, according Julie Bolcer of the Manhattan US Attorney's office.
Serageldin served as the former global head of structured credit where he allegedly artificially inflated mortgage backed bond prices between August 2007 and February 2008. This was the same period that the US subprime housing market was on the verge of collapse and bonds had lost value at a very fast rate.
In the indictment, it was alleged that Serageldin created a scheme 'to enhance his apparent job performance' for the purpose of obtaining a larger bonus as well as be up for a promotion.
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