Eric Butler, Julian Tzolov Accused Of Securities Fraud, Tzolov Flees Country

The broker said the securities were as safe as cash. After all, he claimed, the outfit that issued them, Glacier Education Loan, bought student loans guaranteed by the federal government.

The problem: there is no such thing as Glacier Education Loan.

Authorities say the broker, Eric Butler, sold customers some of the most toxic investments of the subprime age -- collateralized debt obligations -- in what federal prosecutors characterize as a $1 billion bait-and-switch.

On Wednesday, Mr. Butler and a former colleague, Julian Tzolov, were indicted on securities fraud and other charges, believed to be the first criminal charges stemming from the auction-rate securities debacle.

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Read related opinion and news:

::Dan Solin: The Auction Rate Securities Settlements: An Illusion Of Regulation
::Merrill Dodges Lawsuit By Buying Back Auction Rate Securities

Comments

[iheardthisbefore]

With all this extra security and scrutiny at airports and with ICE so well armed with all the
latest snooping and eavesdropping equipment.....can someone explain to me how
Tzolov managed to leave this country unhindered????
What a joke.
The DOJ scores again.

[NoOneSpecial]

Now let me guess!

Which major USA political party did these guys belong to?

Gee, this is tough...

[themodernleader]

The Investment Banking managers whould also be indicted. And the whole bunch who allowed "anything goes" should be cashiered and their undeserved profits recovered for the deceived investors.

[pbfishtaco]

No Whining, please Sen. Gramm.

[KillTheMessenger]

How about fetching the thumbscrews and the Spanish Boot from storage?

:-)

[NicoleAnon]

They won't do that because they want the criminals...I mean bankers...to be able to scam people again. If something happens once or twice, you think it's a mistake or people will learn. When something happens over and over and over and over and over and over and you think it's suddenly going to stop then you're fooling yourself.

This country has scam after scam after scam ever since the stock market has been around. The S&L scam and the housing scams and I'm predicting the next scam will involve alternative energy sources and taxpayers continue to pay for it. The reason the government went after two individual bankers at BS is that they wants their banker buddies to know that they will NEVER hold companies accountable. They will simply arrest a couple scapegoats and pretend that they're actually doing something.

[Novista]

We could go all the way back to the Bank of North America, and later the Bank of the United States, and later the Second Bank of the United States -- to find bankers as criminals.

And they say consistency is a virtue?!