A grand jury is expected today indict two former Bear Stearns hedge fund managers on securities fraud charges. Charlie Gasparino broke the news on CNBC, saying that the indictments of Ralph Cioffi and Matthew Tennen are likely to be announced tomorrow. Cioffi and Tannin will likely be arrested if they do not turn themselves in to the FBI.
Investigators allege that the two fund managers misled investors, instilling a false confidence in the prospects of the hedge funds even after it became clear to the managers that they were in trouble due to exposure to mortgage backed securities. The collapse of the two funds was s foreshadowing of the broader credit crisis that engulfed Wall Street. But because Cioffi and Tennen were the first, they apparently lost the criminal prosecution lottery and so must be made to suffer.
Bear Stearns Fund Managers Likely to be Indicted [CNBC]
Posted by guest , Jun 18, 2008 4:30PM
Those guys are going to have @$$holes the size of hulahoops by the time they get out of the big house!
Posted by guest , Jun 18, 2008 5:01PM
I find it interesting that the schadenfreude so prevalently displayed in the Wachovia layoff comments is completely missing in this topic.
Posted by guest , Jun 18, 2008 6:06PM
Which is it, Matthew Tannin or Matthew Tennen? You have it spelled Tennen twice in the post, and Tannin once. Yesterday you had it as Tannin. CNBC spells it Tannin.
For heaven sakes, the guy is going to be indicted. The correct spelling of the name is important, because there's always a possibility that there is someone named Tennen who doesn't want his name dragged through the mud.
Posted by guest , Jun 18, 2008 7:35PM
they deserve and indictment and being found guilty. they lied to their gills. to jail!!!
Posted by guest , Jun 18, 2008 9:35PM
Guest@7:35pm. So much for the presumption of innocence, eh?
Posted by guest , Jun 18, 2008 11:59PM
And movie critic and blog-hound Rich Marin has escaped similar fate because ... (?)
How come he comes out unscathed (and from my sources, looking to run a hedge fund) from all of this???
I wouldn't let him manage my dog's allowance.
Posted by guest , Jun 19, 2008 1:04AM
I don't think Marin was communicating with investors in the hedge funds. That seems to be what the prosecutors are interested in, whether statements known to be untrue were made to the investors. The conflict between statements made over Cioffi's name or by Cioffi and Cioffi's actions in withdrawing his own money from the funds at roughly the same time is what drew Cioffi into the criminal arena.
Posted by guest , Jun 19, 2008 10:57AM
Perp walk photo
http://www.bloomberg.com/apps/news?pid=photos&sid=ac4Nsm_DEqP8
Posted by guest , Jun 20, 2008 12:41AM
Are these executive suppose to take the fall for an entire rogue industry that has been ravaging naive investors for years while regulators have turned a blind eye? The game is up. It's time to expose the scam for what it is and has been for too many years. This is too big to expect charging these two men to be sufficient.