The Clock Has Started For Ralph Cioffi

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In the current environment where every institution and individual allegedly involved in some sort of wrongdoing neither admits nor denies that they committed crimes, Ralph Cioffi may signal the end of an era. After finding sworn testimony doubles as Kabuki Theater, US prosecutors believe they may finally have a smoking gun when it comes to what Cioffi classifies as being truthful regarding obtaining a line of credit for a Florida condo project.

"The government asserts that the proffered evidence is direct proof of the charged crimes," prosecutors said Sept. 25 in court papers. "This proof will demonstrate that Cioffi and Tannin used Cioffi's investment in the High Grade Structured Credit Strategies Enhanced Leverage Master Fund Ltd. to lie to Busey Bank to secure a $4.25 million line of credit," they said

Unfortunately, given that Cioffi doesn't go on trial until next month, the head start they just gave him is direct proof the government still has a lot to learn when it comes to putting people behind bars.
U.S. Says It Has 'Proof' of Cioffi's Insider Trading [Bloomberg]

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