Kareem Serageldin, a former Credit Suisse executive wanted by U.S. authorities on charges of mortgage securities-related fraud, was arrested by British authorities.
The Associated Press reports that Serageldin, formerly Credit Suisse's managing director and global head of structured credit, is being charged with conspiracy, falsifying books and records, and wire fraud in the U.S. If convicted, he faces the potential for 45 years in prison.
Federal prosecutors allege that Serageldin, working with two Credit Suisse traders, attempted to maintain an artificially high value on the value of bonds backed by deteriorating subprime mortgages. Prosecutors blame this scheme as being crucial to Credit Suisse's $2.65 billion write-down in March 2008.
Serageldin is an American citizen living in Britain, and he previously refused to return to the U.S. to answer the charges. British prosecutors will begin extradition proceedings against him today at London's Westminster Magistrates' Court.