Ex-Broker Set to Plead in Fraud Case

The Wall Street Journal reports that, former Credit Suisse Group broker Julian Tzolov, who returned to the U.S. last week after being a fugitive for more than a month, is expected to plead guilty Wednesday to fraud charges tied to the sale of auction-rate securities, according to people familiar with the matter.

A hearing, described as a "criminal cause for pleading," has been set for 9 a.m. Wednesday before U.S. District Judge Jack Weinstein in Brooklyn, N.Y.

Mr. Tzolov is expected to plead guilty to charges related to an alleged scheme to obtain higher commissions by selling clients higher-risk auction-rate securities backed by mortgages, when those clients wanted to buy lower-risk securities backed by student loans, according to a person familiar with the matter. It is not clear whether the expected guilty plea will be part of a deal with prosecutors.

Ex-Broker Set to Plead in Fraud Case

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Arkansas Credit-Repair Fraudsters Lose Big

According to the Northwest Arkansas News, Sherrye Mance and Tiffany Morris have not responded to a federal judge's order that they pay nearly $700,000 in penalties for defrauding at least 139 Arkansans through a credit-repair scam.

According to the lawsuit, the women had been defrauding consumers in Arkansas and some surrounding states for about four years, using unincorporated business names such as Financial Services Unlimited, Service Unlimited Inc., and Credit Counseling Service.

The lawsuit alleged that the women "have offered for sale to consumers services purported to improve a customer's credit history, credit record, and credit ratings." But, the lawsuit also notes, "It is unlikely that any services were actually performed," or at least performed in such a way as to benefit any customers.

State wins credit-repair fraud case
BY LINDA SATTER

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