Two former Credit Suisse (CS Quote) brokers were indicted on securities fraud Wednesday, after allegedly tricking customers into purchasing more than $1 billion in risky auction-rate securities.
The U.S. Attorney's office in Brooklyn also charged Julian Tzolov and Eric Butler with conspiracy and wire fraud charges. The securities fraud count and two counts of wire fraud each carry a sentence of up to 20 years in prison and a $5 million fine. The conspiracy count carries a sentence of up to five years imprisonment and a $250,000 fine.
Butler is scheduled to be arraigned Wednesday afternoon. Separately, the Securities and Exchange Commission also charged the pair with fraud. Tzolov, 35, and Butler, 36, resigned from Credit Suisse about a year ago as clients began accusing the brokers of misleading them about their investments. ...
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