May 3 (Bloomberg) -- A Credit Suisse Group investment banker was charged with feeding advance tips on nine corporate acquisitions, including a $32 billion bid for TXU Corp., to investors who made illegal bets, U.S. federal prosecutors said.

Hafiz Naseem, 37, who worked on a team of energy bankers in the Swiss firm's New York offices, was arrested today and charged with insider trading on deals the bank advised, the U.S. Attorney's Office in Manhattan said in a statement. The scheme allegedly netted more than $7 million.

Recipients of the tips included a Pakistani banker who passed them to ``certain high-profile financial executives'' in that country, the U.S. Securities and Exchange Commission said in a related civil lawsuit today.

``Naseem seriously abused his position of trust with Credit Suisse and its clients by blatantly stealing market-moving information,'' Rose Romero, director of the SEC's Fort Worth office, said in a statement. ``Naseem schemed to line his own pockets, as well as the pockets of others, with unlawful profits to the detriment of innocent shareholders.''

The case stems from a probe of insider trading in TXU call options days before Kohlberg Kravis Roberts & Co. and Texas Pacific Group announced the largest-ever leveraged buyout in February. In court documents, the SEC also identified three other people who allegedly made similar well-timed trades.

``We are shocked and extremely disappointed that an employee would violate not only our trust, but the trust of our clients,'' Zurich-based Credit Suisse said in a statement. ``We immediately brought the activities of this employee to the attention of the relevant authorities.''

Naseem's lawyer, Craig Warkol, didn't immediately respond to an e-mail message seeking comment.

`Pending Mergers' Leaked

Naseem, a resident of Rye Brook, New York, used his office phone at Credit Suisse to call the Pakistani banker on five days in February, leaking tips about the TXU buyout, according to the SEC's suit filed at U.S. District Court in Chicago.

``This was not the first time'' he leaked confidential information, the SEC said. ``Immediately upon obtaining employment at Credit Suisse in March 2006'' Naseem began tipping the banker by placing calls ``close in advance of -- and frequently the day of or the day before -- announcements of pending mergers.''

Naseem placed the calls to the Pakistani banker's home and cell phones in advance of deals involving Hydril Co., Trammell Crow Co., John H. Harland Co., Energy Partners Ltd., Veritas DGC Inc., Jacuzzi Brands Inc., Caremark Rx Inc. and NorthWestern Corp., as well as TXU, according to SEC's complaint.

To contact the reporter on this story: David Scheer in Washington dscheer@bloomberg.net

Last Updated: May 3, 2007 20:19 EDT