New York Securities Fraud Nets Man a Fine and 5 Years in Prison
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 to officials.
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.