Eric Butler, the former Credit Suisse Group AG broker charged with fraudulently selling millions of dollars in subprime securities to corporate clients, was implicated in the scheme by his former partner, Bulgaria-born Julian Tzolov.

"We did it together," Tzolov, 36, told jurors today in Butler's criminal trial in federal court in Brooklyn, New York, as cited by Bloomberg agency. "We were sitting right next to each other. We were meeting with clients together."

Tzolov, who pleaded guilty to securities fraud and other charges July 22, testified as jurors viewed snapshots of the two men smiling together at a birthday party, at Butler's wedding and at a 2006 New Year party in Miami Beach, Florida.

Tzolov said that he and Butler worked together to defraud investors including GlaxoSmithKline Plc, Roche Holding AG and Potash Corp. of Saskatchewan.

Butler, 37, is being tried on charges he falsely told clients the products were backed by federally guaranteed student loans and were a safe alternative to bank deposits or money market funds. Tzolov testified today that he and Butler put the money into the riskier securities to get higher commissions.

Butler faces a possible prison sentence of about 34 years, according to prosecutors in the office of Brooklyn U.S. Attorney Benton Campbell.

Tzolov was a fugitive for three months after disappearing while free on million bond. He was arrested July 15, just outside Marbella, Spain, accompanied by a bodyguard and carrying false documents, Spanish authorities said. He faces a potential life term in prison when he's sentenced Oct. 27, prosecutors have said.

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