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Former Credit Suisse trader pleads guilty in NY sub-prime mortgage securities case
NEW YORK (AP) ' A former Credit Suisse trader has pleaded guilty in a federal probe that accused him of misleading investors in the sub-prime mortgage securities market.
David Higgs also signed a cooperation agreement Wednesday while pleading guilty in Manhattan. The conspiracy charge carries a potential maximum sentence of five years in prison.
Others expected to be charged in the probe have not been identified publicly. Authorities say another person is expected to surrender Wednesday.
The probe centers on exaggerations brokers made about the value of subprime mortgage securities. Authorities say brokers enticed investors to pour money into the securities market for subprime mortgages by making the market sound healthy.