Indicted Ex-Bear Managers Facing New Charges

Jun 27 2008 | 12:32pm ET

Two former Bear Stearns hedge fund managers indicted last week may face additional charges.

Ralph Cioffi and Matthew Tannin have already been accused of misleading investors in their High Grade Structured Credit Fund and its more highly-levered sister offering. Now, federal prosecutors may add allegations that the two misled the banks that lent money to and invested in the funds, which collapsed last summer after being battered by the credit crisis.

Charges could be added to the indictments as early as next week.

Investigators have spoken to Bank of America, Barclays, Merrill Lynch and other banks that had relationships with the two funds. They are especially interested in BofA, which guaranteed and sold $4 billion in collateralized debt obligations last spring.

BofA is reportedly telling authorities that it believes it was misled.

Barring new charges, Cioffi faces 40 years in prison if convicted, and Tannin 20 years.


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Hedgies, Economists and Musicians Mingle At Milkin Mixers In Hamptons

Aug 25 2014 | 6:00am ET

Leave it to Michael Milken to bring some gravitas and sweat to the Hamptons -- along...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

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.