Bulgarian NY Broker Tzolov Sentenced to Five Years for Fraud

A Spanish Home Office undated handout picture provided on 16 July 2009 showing US former Credit Suisse Securities stockbroker Julian Tzolov, arrested by the Spanish Police in Marbella, Malaga, southeastern Spain, 16 July 2009. Photo by EPA/BGNES

Julian Tzolov, a Bulgarian former broker at Credit Suisse Group AG, who after fleeing jurisdiction pleaded guilty to securities fraud, has been sentenced to five years in prison.

Tzolov, 38, was sentenced today by U.S. District Judge Jack B. Weinstein in Brooklyn, New York. He was accused of fraudulently selling securities in a scheme that cost investors more than USD 1.1 B.

Since the court took into consideration the time Tzolov has served in custody so far, he will stay behind bars an additional two years, according to a spokesman for the U.S. Attorney's Office in Brooklyn.

During the court hearing Tzolov stressed his cooperation with the government in the prosecution of his partner in the fraud, Eric Butler, and said he wished to return to his native Bulgaria to see his elderly father.

"I feel extremely sorry for everything I've done," Tzolov said.

Bulgaria-born Tzolov was declared a fugitive by US federal prosecutors in June 2009 pursuing alleged fraud involving auction-rate securities.

He was caught by Spanish authorities in the middle of July with the assistance of the Federal Bureau of Investigation, after fleeing prosecution.

Tzolov pleaded guilty to three indictments at a hearing before US District Judge Jack Weinstein in Brooklyn, New York, at the end of July, including charges of conspiracy, securities fraud, bail-jumping, visa fraud and multiple counts of wire fraud.

During his plea Tzolov implicated Eric Butler, also formerly of Credit Suisse Securities (USA) LLC, saying they made statements "which mislead or were intended to mislead clients about the nature of the securities purchased on their behalf."

Butler, 39, was sentenced in January 2010 to five years in prison. He is free on bail while he appeals his conviction.

"I have been going to bed at night and waking up every morning not being able to forgive myself, how I could let fear cloud my judgment and let down people who have been treating me honestly and professionally," Tzolov told the judge before being sentenced, referring to his flight. "I made the most colossal mistake of my life."

Tzolov will be deported to Bulgaria after he completes his sentence.

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