Bear Stearns Hedge Fund Managers Lose Criminal Prosecution Lottery

Author:
Publish date:
Updated on

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]

Related