(Reuters) - A former Credit Suisse broker charged with fraud in an auction rate securities scam may have fled to his native Bulgaria, the Wall Street Journal reported on Thursday, citing people familiar with the case.
The move comes as prosecutors prepare to bring criminalcharges in a probe into activities of two former Credit Suissebrokers -- Bulgarian-born Julian Tzolov and Eric Butler --claiming they lied to investors about how they placed moneyinto short-term securities, the Journal said.
The two New York-based brokers resigned from Credit Suisseon September 7, 2007, the newspaper had said earlier thismonth. It had also said Credit Suisse is not a target of theinvestigation, according to people familiar with the matter.
The investigation involves the market for auction ratesecurities, which allow issuers such as municipalities andstudent loan companies, closed-end mutual funds or financialinstitutions to borrow money for the long term but atshort-term, or lower, interest rates, according to the paper.
The probe is being conducted by the U.S. attorney's officefor New York's Eastern District, the paper said. The JusticeDepartment did not immediately return a call or an e-mailseeking comment.
Lawyers for Tzolov and Butler could not immediately bereached for comment.
(Reporting by Varsha Tickoo in Bangalore; Editing by PaulBolding)
