The broker said the securities were as safe as cash. After all, he claimed, the outfit that issued them, Glacier Education Loan, bought student loans guaranteed by the federal government. The problem: there is no such thing as Glacier Education Loan. Authorities say the broker, Eric Butler, sold customers some of the most toxic investments of the subprime age -- collateralized debt obligations -- in what federal prosecutors characterize as a $1 billion bait-and-switch. On Wednesday, Mr. Butler and a former colleague, Julian Tzolov, were indicted on securities fraud and other charges, believed to be the first criminal charges stemming from the auction-rate securities debacle. Read the full story here -OR- Read related opinion and news: ::Dan Solin: The Auction Rate Securities Settlements: An Illusion Of Regulation ::Merrill Dodges Lawsuit By Buying Back Auction Rate Securities ...
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