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Eric Butler found guilty of fraud crimes

Published on 18 Aug 2009 under category: legal

A US court has found a former broker guilty of fraud crimes after his deceptions cost investors $1 billion (£610 million).

Eric Butler, formerly part of Credit Suisse, has been convicted for white collar crimes and faces a maximum possible sentence of 45 years in jail.

He was found guilty of selling high-risk sub-prime investments to people who were told that these were much safer than they are, receiving a higher level of commission due to this.

Co-defendant Julian Tzolov had earlier pleaded guilty to the charges against him, which could lead to him receiving a more lenient sentence.

Benton Campbell, US attorney for the eastern district of New York, states that the white collar crimes hurt the investors who trusted them.

He says: "The defendants' fraudulent misrepresentations saddled investors with unknown risks they did not bargain for."

Earlier this month, businessman David Maskill was jailed for white collar crimes after being found guilty on 12 fraud charges.