Bloomberg – Former Bear Stearns Cos. hedge fund manager Matthew Tannin, accused of misleading investors, said “We could blow up” in a 2006 e-mail, according to documents released by prosecutors.

Tannin, 47, is set to go on trial Oct. 13 for securities fraud with fellow ex-manager Ralph Cioffi, 53. In a message with the subject title ‘Thoughts” that Tannin sent to himself on Nov. 23, 2006, he said was “stressed” about his work at the fund.

“I became very worried very quickly,” Tannin wrote in the e-mail. “Credit is only deteriorating. I was worried that this would all end badly and that I would have to look for work.”

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Tags: hedge-fund-manager, misleading investors, securities fraud

Bloomberg – Former Bear Stearns Cos. hedge fund manager Ralph Cioffi, indicted for an alleged fraud that helped bring down the securities firm, attempted to use his $2 million redemption from a fund he supervised as collateral for a condominium, U.S. prosecutors said.

Cioffi, 53, also ”rarely” heeded compliance trading measures, the government said in a court filing in Brooklyn, New York, federal court. Cioffi and another former Bear Stearns hedge fund manager, Matthew Tannin, 47, were indicted last year for misleading investors about the health of two hedge funds that failed in July 2007, costing investors $1.6 billion. The implosion helped trigger the credit crunch and the eventual sale of Bear Stearns to JPMorgan Chase & Co.

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