The British citizen, formerly a managing director in the investment banking division of Credit Suisse Group, was also ordered to pay nearly $1 million in fines and forfeiture of gains.
According to the Justice Department, Higgs and his supervisor Kareem Serageldin sought to hide steep losses on the values of mortgage-backed securities their unit held as the US housing market tanked in 2007.
They marked the bonds for gains on their books, a discrepancy eventually discovered in 2008 by Credit Suisse internal auditors.
The discovery forced the bank to take a $2.65 billion writedown on its portfolio of asset-backed securities in its 2007 accounts.
Serageldin, also a British citizen, was sentenced last November to two and a half years in prison in the case after being extradited from Britain.