Former Broker to be Retried for Securities Fraud

Jun 20, 2011 - LegalZoom News Sources
Former Credit Suisse broker Eric Butler was initially charged with securities fraud after the collapse.

The 2008 financial collapse that occurred led to prosecutions of certain individuals regarding white collar crime. Securities fraud and intentionally misleading investors are two charges that were commonly levied against bankers in an attempt to secure a small level of justice following the destruction.

Former Credit Suisse broker Eric Butler was initially charged with securities fraud after the collapse. His sentence was overturned on June 15 due to a ruling that noted that Brooklyn was the wrong venue for the trial, according to Bloomberg.

Though the matter of location for the trial was an issue of contention with Butler's legal representation, the charges against the broker are not expected to be dropped, the news source reported.

"While the matter is open, it is unlikely that the sentencing terms on Counts One and Three will be changed from five years’ imprisonment, concurrent," U.S. District Judge Jack B. Weinstein said in an order, reported Bloomberg.

Butler was convicted for defrauding institutional investors out of $1 billion, and his co-defendent Julian Tzolov is currently serving a four-year sentence for his part in the securities fraud, according to Reuters.