Government weighs more charges in Bear case
The government is considering bringing further criminal charges in the case involving two former Bear Stearns executives indicted last month related to the collapse of two hedge funds they oversaw, a federal prosecutor said on Friday.
In a court hearing in U.S. District Court in Brooklyn, Assistant U.S. Attorney Patrick Sinclair said “the government is indeed contemplating additional charges.”
He did not provide any details, but said the government is working to make a final decision about bringing additional charges in the next few months.
“We are looking to have that resolved by early fall at the absolute latest,” Sinclair told U.S. District Judge Frederic Block.
Ralph Cioffi and Matthew Tannin were charged on June 19 with conspiracy and securities fraud related to the demise of the two funds last year, which spurred questions about oversight and risk management at Bear Stearns. The firm was sold in March to JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz) in an emergency takeover brokered by the U.S payday loans online. Federal Reserve.
Cioffi and Tannin, who were in court for Friday’s brief hearing but did not address the judge, have both pleaded not guilty.
A lawyer for Cioffi, Edward Little, told the judge at the hearing “there will definitely be a trial” in the case. A trial date has not yet been set. Judge Block scheduled another hearing in the case for September 26.
The charges marked the first major criminal case announced by federal prosecutors stemming from the subprime mortgage crisis. Cioffi and Tannin are accused of touting the funds’ prospects to investors as an “awesome opportunity,” while at the same time expressing private concern about an impending subprime mortgage meltdown.
Filed under: marketing by Pascal