Former Bear Stearns Managers Indicted on Securities Fraud
Former managers of two high-profile Bear Stearns Cos. bond portfolios have been indicted on securities fraud and other charges in the collapse of the funds last year, which cost investors more than $1 billion.
Ralph Cioffi and Matthew Tannin, according to a nine-count indictment, have been charged with conspiracy, securities fraud and wire fraud.
The U.S. Attorney's office in Brooklyn is expected to have a press conference at 1:15 p.m. EDT Thursday to discuss the charges. Officials from the U.S. Securities and Exchange Commission and the FBI are expected to participate in the press conference.
"Matt Tannin is innocent," said Susan Brune, a lawyer for Mr. Tannin. "He is being made a scapegoat for a widespread market crisis. He looks forward to his acquittal."
Criminal charges against Messrs. Cioffi and Tannin are the most high-profile ones to emerge so far as regulators and law-enforcement personnel probe financial missteps that fueled a global credit crisis last year.
The funds imploded in June 2007 as credit markets contracted, costing investors $1.6 billion.
Published on June 19, 2008
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