Julian Tzolov apprehended by Department of Justice

(Bloomberg) -- Julian Tzolov, the fugitive former Credit Suisse Group AG broker who was charged with bail jumping, has been arrested, Assistant Brooklyn U.S. Attorney Daniel Spector said in a letter to court filed today. Authorities in Marbella, Spain have taken Tzolov into custody following an international manhunt after he disappeared in New York in May.

Tzolov, who’s accused of fraudulently selling clients subprime mortgages linked to auction-rate securities, was declared a fugitive in June. He is accused of a $400 million fraud.

The arrest comes as U.S. prosecutors filed new charges against former Credit Suisse broker Eric Butler, who is scheduled to go to trial next week for fraudulently selling clients subprime mortgages linked to auction-rate securities.

Butler and Tzolov were accused yesterday in a 14-count indictment in federal court in New York of wire fraud in an illegal scheme to sell securities. Butler is scheduled for trial on July 20 in the original case.

Julian Tzolov, 35, was arrested Sept. 4, 2008 at Kennedy Airport after returning from his native Bulgaria to face charges. Since then he has been free on $3 million bail. He was wearing an electronic monitoring bracelet around his ankle when he left his Fifth Ave. apartment on May 9.