Not Guilty!


The Wall Street trial of the century (and a horrendously botched prosecution) has led to the acquittal of two former Bear Stearns hedge fund managers accused of defrauding investors.
It took a jury less than two days to exonerate Ralph Cioffi and Matthew Tannin of securities and wire fraud. Cioffi was also accused of insider-trading. The two were accused of lying to investors in their two hedge funds, painting a rosy picture while the bottom fell out of the credit market. Both funds failed, costing investors $1.6 billion.
Their victory is a huge defeat for the Justice Dept., serving as something of a test case for similar battles against Wall Street executives.