Tuesday, 30 September 2014
Last updated 8 hours ago
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.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...