The Justice Department brought civil fraud charges Monday against a former Deutsche Bank executive over alleged misrepresentations on more than $1 billion in mortgage-backed securities sold ahead of the 2008 financial crisis. US prosecutors are seeking an unspecified civil penalty from Paul Mangione, former Deutsche Bank head of sub-prime trading, charging that he misrepresented the quality of loans backing a pair of securities worth a total of $1.4 billion.

Mangione "falsely represented" that Deutsche Bank had strict underwriting guidelines and a strict monitoring process for the securities, US officials said. Pension plans, financial institutions and religious organizations suffered "significant" losses as a result.

Copyright Agence France-Presse, 2017