Sentencing Due for Bulgarian NY Broker Tzolov

Bulgarian Ex-Credit Suisse Group broker Julian Tzolov, who has pleaded guilty to criminal charges in a scheme involving auction-rate securities, will be sentenced on October 27.

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.

"With respect to all of my criminal conduct, I knew at the time that my actions were in violation of the law. I knew they were wrong," Tzolov said. "I am truly sorry for my conduct."

36-year-old Tzolov, faces a maximum of 20 years in prison on each fraud count and federal sentencing guidelines call for a life sentence. He will be deported to Bulgaria after he completes his sentence, the Wall Street Journal reported.

The plea came on the same day the criminal trial was scheduled to begin against Tzolov and Eric Butler, both formerly of Credit Suisse Securities (USA) LLC.

Assistant US Attorney Greg Andres said the investor losses from Tzolov's scheme are believed to exceed USD 400 M.

During his plea Tzolov implicated Butler, saying they made statements "which mislead or were intended to mislead clients about the nature of the securities purchased on their behalf."

Bulgaria-born Tzolov was declared a fugitive by US federal prosecutors in June 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 jurisdiction.