{"id":639,"date":"2010-01-30T00:32:50","date_gmt":"2010-01-30T00:32:50","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2010\/01\/judge_gives_lower_sentence_to_1"},"modified":"2022-03-09T15:59:27","modified_gmt":"2022-03-09T21:59:27","slug":"judge-gives-lower-sentence-to-1","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/judge-gives-lower-sentence-to-1\/","title":{"rendered":"Judge Gives Lower Sentence to Former Credit Suisse Broker Convicted of Auction-Rate Securities Fraud"},"content":{"rendered":"

\t\t\t\tEric Butler, a former Credit Suisse Group AG broker, has been sentenced to five years in prison for securities fraud<\/a>. A jury found the ex-stockbroker guilty of misleading clients into thinking that they were buying student loan-backed, low-risk auction-rate securities when they were actually buying ARS that were high-risk and backed by home mortgage assets. He modified the trade confirmations to conceal this discrepancy. His securities fraud scam collapsed when the ARS market did, but not before investors sustained $1.1 billion in losses.<\/p>\n

The government asked that Butler be ordered to serve a 45-year prison sentence pay stiff penalties. However, U.S. District Court Judge Jack Weinstein sentenced him to just five years, imposed a $5 million fine, and ordered that he forfeit $500,000. <\/p>\n

Following the guilty verdict, Weinstein expressed concern about placing all of the blame on Butler. He said that he gave the ex-Credit Suisse broker a reduced sentence because the financial services industry has a “pernicious and pervasive” corrupt culture.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Eric Butler, a former Credit Suisse Group AG broker, has been sentenced to five years in prison for securities fraud. A jury found the ex-stockbroker guilty of misleading clients into thinking that they were buying student loan-backed, low-risk auction-rate securities when they were actually buying ARS that were high-risk and backed by home mortgage assets. […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3817,3752],"tags":[],"class_list":["post-639","post","type-post","status-publish","format-standard","hentry","category-credit-suisse","category-financial-firms"],"yoast_head":"\nJudge Gives Lower Sentence to Former Credit Suisse Broker Convicted of Auction-Rate Securities Fraud — Investor Lawyers Blog — January 30, 2010<\/title>\n<meta name=\"description\" content=\"Eric Butler, a former Credit Suisse Group AG broker, has been sentenced to five years in prison for securities fraud. 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