Broker Fraud

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A broker which said that securities are just as safe as cash, also says that student loans were purchased by Glacier Education Loan and were guaranteed by the federal goverment. Only problem with this is the fact that there is no such thing as Glacier Education Loan.
Eric Butler apparently sold his customers some very toxic investments, collateralized debt obligations in what is being characterized as a one billion dollar bait and switch by federal prosecutors.
Julian Tzolov fomer partner to Eric Butler were both indicted on fraud and other chargers. The United States attorneys office located in Brooklyn made a statement that both Butler and Tzolov previously worked for Credit Suisse Securities and sold securities which were backed by C.D.O's, subprime mortgages and mobile home contracts. Though informed those investors that the investments which they were buying were linked to safe student loans. This was all designed for them to gain very high commissions.
If these two men are convicted of the charges against them, they could face a prison term of up to 65 years. Commission for Securities and Exchange is also filing civil charges against both Butler and Tzolov.
Butlers lawyer says Butler thought he was doing what was in the best intrest of his customers and that butler believed in the triple A securites he sold.
Tzolov is now believed to be in Bulgaria after fleeing the country. Lawyer for Tzolov, Kenneth M. Breen apparently choose not to make any comments.
Examinations on how these brokers were able to sell these securites are being done by regulators. The regulators are looking into whether or not these brokers completely disclosed the risks to the investors.
Thankfully there is a shining light at the end for the investors as major Wall Street banks have agreed to purchase these aweful investments which are around fifty billion dollars. This is all in an attempt to lessen the legal fallout.
These two men did purchase a few student loans, they also purchased investments which were dangerous, all with out telling their customers.
More than one billion dollars of other securites were purchased between February of 05 and August of 07 all with out the authorization of clients.
The two men apparently have sent email messages to clients in which they changed descriptions of these securites to cover up their scheme.
Both Tzolov and Butler were suspended from Credit Suisse after the bank learned of the scheme these two men were involved in. Credit Suisse informed the regulators and continues to offer assistence to authorities.

[carol b]

What a dirty thing to do to people. I believe in the power of the
internet. If you are going to spend your money on anything take
the time to research first. Do not jump in feet first and blindfolded.

I want to know where my money is going and how well it is going
to do before I spend it.

[pennypinch]

This is so aweful for them to have done to innocent, unknowing people. They deserve the maximum punishment for what they have done. These sorts of crimes have to put to a stop now before many many others get hurt. Also, if they give these ones a higher punishment, not the normal slap on the hand, maybe it will deter others from doing similar things.

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I also agree with everyone, it is extemely important to do extensive research before you hand over your money to someone. I also hope they recieve the max. punishment for this. If I see any updates on this I will be sure to post it, so we can see what happens. People are having so many money troubles right now as it is with the economy that this was the last thing they needed. Let us all hope that these two men are forced to pay for the crimes they have committed.