SEC Charges Traders In $1 Billion|Auction Rate Securities Fraud

     MANHATTAN (CN) – The SEC today charged two Wall Street brokers with defrauding customers by making more than $1 billion in unauthorized purchases of subprime mortgage-related auction rate securities. Credit Suisse representatives Julian Tzolov and Eric Butler falsely told customers the securities were backed by federally guaranteed student loans, and their customers were stuck with more than $800 million in unsaleable securities when the auction rate marked collapsed, the SEC said.

%d bloggers like this: