Ex-Bear Stearns Hedge Fund Duo Face SEC Trial Next Year

Sep 12 2011 | 12:29pm ET

More than two years after triumphing over federal prosecutors, two former Bear Stearns hedge fund managers will be back in court to fight a Securities and Exchange Commission lawsuit.

A federal judge in Brooklyn, N.Y., scheduled the civil trial of Ralph Cioffi and Matthew Tannin for Feb. 13. The SEC lawsuit, filed at the same time as their criminal indictment, accuses the two men of misleading investors about the financial health of their two hedge funds, the Bear Stearns High-Grade Structured Credit Fund and a more highly-levered sister fund. Their collapse more than four years ago cost investors some $1.6 billion and contributed to the eventual collapse of Bear itself.

The SEC had pledged shortly after the acquittal of Cioffi and Tannin that it would move forward with its case, which has a lower standard of proof. Jurors in the criminal case said after that trial that they believed that Cioffi and Tannin had been working furiously to save the fund.

During a conference on Friday, a lawyer for the SEC told U.S. District Judge Frederic Block that the two sides have had "no discussions of substance" about settling the charges.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.