In a convoluted
New York securities fraud case involving the Credit Suisse Group, Eric Butler has finally been sentenced
to 5 years in prison. Butler had originally been convicted of securities
fraud in 2009. In January 2010, he was sentenced to 5 years in prison
and a fine, but multiple issues, including the overturning of his conviction
for securities fraud, have delayed this sentence.
Allegedly, Butler, along with his partner Julian Tzolov, misled investors
and claimed that the securities sold to their clients were a safe alternative
to money-market funds and bank deposits. They apparently claimed that
the securities were backed by guaranteed student loans; however, the securities
were actually backed by corporate debt and subprime mortgages. The risks
associated with these securities were not disclosed to investors, according
Earlier this year, the Manhattan federal appeals court overturned Butler's
conviction for securities fraud. This was done because it is believed
that he should have been tried in Manhattan instead of Brooklyn, since
that is where Credit Suisse conducted business. Although the conspiracy
charges were upheld at that time, the securities fraud, wire fraud, and
mail fraud counts were moved to Manhattan, and Butler consented. Butler
pled guilty to the securities fraud count on August 23rd.
Butler will report to prison in New Jersey on September 9th.
The securities fraud attorneys with Meyer Wilson represent victims of investment
fraud nationwide in
stockbroker mediation, arbitration, and litigation.