[JURIST] Former Credit Suisse broker Julian Tzolov pleaded guilty Wednesday to multiple counts of fraud and conspiracy before the US District Court for the Eastern District of New York [official website]. Tzolov is accused [complaint, PDF; JURIST report] of defrauding clients out of more than $400 million [WSJ report] by selling high-risk, mortgage-backed securities to clients who requested low-risk investments, in violation of the Securities Exchange Act of 1934, the Securities Act of 1933, and other SEC regulations [text]. Tzolov, who was captured last week in Spain [Bloomberg report] after violating the terms of his bail in early June, faces up to 20 years in prison for each count of fraud.

In light of the numerous acts of financial fraud that have been reported, the Obama administration has made protecting consumers a top priority. Last week, Securities and Exchange Commission chairperson Mary Schapiro pledged policy changes [JURIST report] that would improve the odds of preventing investment fraud. In May, the House of Representatives passed the Senate version [JURIST report] of the credit card holders' bill of rights, which the president signed the following day [press release]. Just two days prior, Obama signed [JURIST report] the Fraud Enforcement and Recovery Act, strengthening criminal laws against financial fraud.