Ex-Bear Stearns Fund Managers Indicted for Fraud
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Former Bear Stearns Cos. hedge fund managers Ralph Cioffi and Matthew Tannin, arrested early this morning at their homes in New Jersey and Manhattan, were indicted for mail fraud and conspiracy to commit securities fraud, the first prosecution in a U.S. crackdown on subprime fraud.
The two men were charged with misleading investors about the health of two Bear Stearns hedge funds whose collapse last year ignited the subprime mortgage crisis. Cioffi was also charged with insider trading. The Securities and Exchange Commission sued the men today, claiming they duped investors before the funds imploded.