Former Bear Hedge Fund Managers May Face More Charges

Jul 21 2008 | 7:36am ET

Two indicted former Bear Stearns hedge fund managers may face new charges, prosecutors said Friday.

The investigation into the collapse of Bear’s High-Grade Structured Credit Fund and a riskier, more highly levered sister fund, is continuing, Assistant U.S. Attorney Patrick Sinclair said in court, and that could lead to further charges against Ralph Cioffi and Matthew Tannin. Any new charges would by filed by the early fall, he added.

Cioffi and Tannin were arrested and charged last month with conspiracy and securities fraud for allegedly misleading investors in the two funds, which collapsed last summer, costing investors $1.5 billion. Tannin faces up to 20 years in prison if convicted, while Cioffi, who was also charged with insider trading, faces up to 40 years. Both men pleaded not guilty and are currently free on bail.

RELATED STORIES

Ex-Bear Hedge Fund Managers Plead Not Guilty To Fraud Charges
Ex-Bear Hedge Fund Managers Arrested, Charged


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of