US names 2 Credit Suisse brokers in bln-dlr subprime fraud

0 Comments | AFP, September, 2008

WASHINGTON (AFP) — US regulators filed civil fraud charges against two Credit Suisse brokers, alleging they made more than one billion dollars in unauthorized purchases of subprime-related securities.

Named in the complaint by the Securities and Exchange Commission were Julian Tzolov and Eric Butler, who had been working in the New York office of Swiss-based Credit Suisse Securities.

The brokers "misled customers into believing that auction rate securities being purchased in their accounts were backed by federally guaranteed student loans and were a safe and liquid alternative to bank deposits or money market funds," the SEC said.

But in fact the securities "were backed by subprime mortgages," and other debts not related to student loans.

The...