Ex-Bear Stearns Hedge-Fund Manager Cioffi Acquitted

November 10, 2009 – In The News
The Record

The acquittal of Ralph Cioffi and another former Bear Stearns hedge fund manager in the biggest criminal case to come out of the collapse of the sub-prime mortgage market could deter prosecutors from taking on similar cases, experts said. A federal jury in Brooklyn acquitted Cioffi, the funds’ former senior portfolio manager, and his chief operating officer, Matthew Tannin, of securities fraud and conspiracy charges after just one day of deliberations.

The quick verdict, after the four-week trial, raised questions about whether this will deter prosecutors from bringing criminal charges in cases connected with the sub-prime meltdown.

Ernest Badway said he would be “shocked” if the verdict dissuaded prosecutors to shy away from similar cases. He called it a “bump in the road.”

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