Banker from Pakistan charged |
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Published
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Tue, 29 May 2007 22:58
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NEW YORK (AP) - A banker in Pakistan was charged Tuesday with conspiracy and securities fraud, accused of making more than $7.5 million in profits by trading on insider information provided by a New York banker who has already been charged in the case.Ajaz Rahim, the head of investment banking at Faysal Bank, was charged in U.S. District Court in Manhattan several weeks after the Securities and Exchange Commission charged him in civil papers with benefiting illegally from tips by a Credit Suisse banker earlier this year.Credit Suisse was a financial adviser in a proposed sale of utility TXU Corp. to private equity firms. Federal prosecutors said in court papers that Rahim earned $5.1 million from trades made based on tips about that transaction alone.Hafiz Muhammad Zubair Naseem, the Credit Suisse banker who allegedly gave Rahim tips, was charged in early May. The SEC said Naseem and Rahim had both worked at American Express Bank in Karachi, Pakistan.In a criminal complaint, FBI Agent Paul Higgins said the fraud was carried out from April 2006 through last February when Naseem are gularly and repeatedly' called Rahim and provided him with secrets.He said Naseem typically called Rahim at his home or on his cell phone prior to a public announcement of a merger.Shortly after receiving the call, Rahim would buy securities based on the inside information, the agent wrote.Naseem, of Rye Brook, N.Y., was accused of passing along the tips while working in the Global Energy Group at the Manhattan offices of Credit Suisse Securities USA LLC. He has been freed on $1 million bail.Naseem came to the United States to study in 2002, earning a degree from New York University before joining Credit Suisse two years ago. He earned a $100,000 annual salary and rented a Westchester County home.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Credit Suisse banker charged with insider trading by US regulators 