According to recent Associated Press article, the two Bear Stearns executives who ran hedge funds that crashed in 2007 during the subprime mortgage meltdown and almost toppled the financial markets were acquitted on Tuesday of lying to investors about the looming crisis on Wall Street. The full text of the article appears below:
Jurors found Ralph Cioffi and Matthew Tannin not guilty of conspiracy
and other charges in an alleged fraud that cost 300 investors about $1.6
billion and nearly caused the demise of Bear Stearns itself. The firm barely
avoided bankruptcy in a rescue buyout by JPMorgan Chase & Co. The jury
began deliberating on Monday.
Both men had been charged with three counts of securities fraud and two counts of wire fraud. Cioffi was also charged with insider trading. Tannin left the courtroom without comment.
The Bear Stearns hedge fund collapse, in March 2008, ushered in a waive of investment firm and bank failures, bankruptcies and a near collapse of the entire financial system. Among the failures were Washington Mutual and Lehman Brothers Holdings. Among the near failures were Merrill Lynch, Citigroup, Wachovia, Fannie Mae and Freddie Mac.
If you have lost money in investments issued or sold by any of these institutions, please contact our office for a free case evaluation. Thank you.