Case will throw light on funds before Bear Stearns collapsed
Friday, August 21, 2009 : PermalinkDaily Telegraph – The funds collapsed as billions of dollars of bets made on mortgage-backed bonds and collateralised debt obligations (CDOs) unravelled, and when the time came to try to sell some of the funds’ sub-prime mortgages, no one wanted to buy them.
At the centre of those funds sat two men – hedge fund manager Ralph Cioffi and Matthew Tannin, the chief operating officer of Bear Stearns Asset Management (BSAM) – who were arrested a year later and charged with several counts of wire and securities fraud, following the loss of $1.4bn of investors’ money.
They face possible 20-year prison sentences, though both have consistently pleaded their innocence. The case against them will be set out at a trial slated to start in October. It centres on emails between the two – and with investors – in which both funds were referred to as "an awesome opportunity", despite allegations that both men knew of the problems within them.
Tags: allegations, asset-management, bear-stearns, bets, billions of dollars, bsam, chief-operating-officer, collateralised debt obligations, daily-telegraph, innocence, investors, money, mortgage-backed-bonds, prison sentences, ralph cioffi, securities fraud, sub prime mortgages, tannin, two men
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