But Credit Suisse's compliance didn't intervene. Pearse was able, according to the indictment, to shift terms for the loans so that neither an OK from Mozambique's prosector nor from the International Monetary Fund was necessary for the state backing of the loans. It is unclear why this highly unusual manipulation of credit terms didn't raise alarm bells at Credit Suisse.
$500 Million for Tuna Fleet
It was Pearse, according to the indictment, who wrote the business plan for the tuna boat fleet, with the end goal of winning the financing for it. Credit Suisse, in a project dubbed Ematum, extended a $500 million hand, while VTB Bank sponsored a $350 million loan.
Singh carried out the due diligence – and unbeknownst to Credit Suisse granted a loan for a massively overvalued fishing fleet which he and Pearse had forecast fantastic revenue out of.
Investors Misled
When the loans were converted into eurobonds three years ago, Credit Suisse once again led the deal. The documentation to investors was misleading: the Swiss bank didn't inform them of other loans to Mozambique, which by that time was moving towards defaulting on its international debts.
Thus, Credit Suisse presumptively aided a fraudulent scheme when it neglected to transfer the loans to Mozambique or to specific vehicles set up for the tuna fleet or other specific projects. According to the U.S. indictment, Credit Suisse sent the funds from New York to Abu Dhabi. To be sure, from there some of the proceeds were shifted to Mozambique – allegedly as bribes.
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