Nov 10, 2009 3:40 pm US/Eastern
2 Ex-Bear Stearns Hedge-funder Execs Acquitted
NEW YORK (CBS) ―
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Chris Hondros/Getty Images
Two former Bear Stearns hedge-fund managers have been acquitted of lying to investors about the implosion of the subprime mortgage market.
A Brooklyn jury found Ralph Cioffi and Matthew Tannin not guilty Tuesday on all counts of conspiracy and fraud. It was the first criminal case to hit Wall Street amid the housing market meltdown.
Prosecutors claimed the pair hid warning signs their funds were about to implode. Prosecutors alleged the fraud cost 300 investors about $1.6 billion.
The domino effect nearly led to the demise of Bear Stearns itself. The firm barely avoided bankruptcy in a rescue buyout by JPMorgan Chase & Co.
Bear Sterns was founded in 1923.
(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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