Ex-Credit Suisse banker guilty of $1bn sub-prime fraud

clock

A former Credit Suisse banker has been found guilty of fraud after deceiving investors into buying risky investments that led to $1bn (£610m) of losses.

Eric Butler, along with this co-defendant Julian Tzolov, sold high-risk US sub-prime investments to people on the premise they were safer products. According to prosecutors in New York, the duo did this to receive much higher commissions. Suspicions about the fraud first surfaced in 2007 when the US housing market began to stall, and bad debts in the sub-prime mortgage market started to be revealed. Butler faces a prison sentence of up to 45 years. Tzolov may get a lesser sentence because he agreed to help prosecutors, and testified against his former Credit Suisse colleague. "T...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

What does 2026 hold for investment?

What does 2026 hold for investment?

‘The disruptors of yesterday are now the establishment’

Jen Frost
clock 17 December 2025 • 3 min read
FCA launches trio of crypto consultations as UK interest nears tipping point

FCA launches trio of crypto consultations as UK interest nears tipping point

Consumer protection and innovation

Patrick Brusnahan
clock 16 December 2025 • 2 min read
Cryptoasset legislation in UK to come into force in 2027

Cryptoasset legislation in UK to come into force in 2027

Consumer protection

Cristian Angeloni
clock 15 December 2025 • 1 min read