Tuesday, December 9, 2008

Ex-Bear Stearns Fund Managers’ Brooklyn Trial Set for September

A federal judge in Brooklyn set a Sept. 28 trial date for two former Bear Stearns Cos. hedge-fund managers, the first stemming from a federal probe of the mortgage-market collapse.

“That’s a firm date,” U.S. District Judge Frederic Block told prosecutors Dec. 5 at a hearing in the office of Brooklyn U.S. Attorney Benton Campbell. Prosecutors told Block they don’t intend to expand their indictment against the men, Ralph Cioffi and Matthew Tannin.

Prosecutors previously said they intended to expand their indictment against the men, who were accused of misleading investors about the health of two hedge funds that failed. The implosion helped trigger the credit crunch and the eventual collapse and sale of Bear Stearns to JPMorgan Chase & Co.

Both defendants pleaded not guilty. They were also sued by the U.S. Securities and Exchange Commission.

The case is U.S. v. Cioffi, 08-00415, U.S. District Court, Eastern District of New York (Brooklyn).

No comments: