Bear Hedge Fund Collapse Trial Set For Sept.

Dec 8 2008 | 1:30am ET

Two former Bear Stearns hedge fund managers will finally stand trial in September, and are unlikely to face additional charges as was previously expected.

The trial of Ralph Cioffi and Matthew Tannin, who managed a pair of hedge funds that invested in subprime mortgages that collapsed last year, helping sink Bear, will begin on Sept. 28, 2009, a judge determined at a pretrial conference on Friday. The two have been charged with conspiracy and securities fraud, with Cioffi, the funds’ senior portfolio manager, also charged with insider trading. Cioffi faces as much as 40 years in prison if convicted, with Tannin looking at 20 years.

But prosecutors, who were mulling additional charges against the pair, declined to bring them by Friday, the deadline set by U.S. District Judge Fredric Block. At Friday’s hearing, Assistant U.S. Attorney Patrick Sinclair told Reuters he “didn’t anticipate” a superseding indictment.

The charges stem from last summer’s collapse of the Bear Stearns High Grade Structured Credit Fund and a more highly-levered sister fund, which cost investors more than $1.5 billion. According to prosecutors, Cioffi and Tannin misled investors about the condition of the funds just as the subprime mortgage crisis began to batter its investments.

Both men have pleaded not guilty and are free on bail.

Cioffi and Tannin also face civil charges filed by the Securities and Exchange Commission.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

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.