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Hedge fund managers cleared of fraud

Published on 11 Nov 2009 under category: legal

Two former Bear Stearns hedge fund managers have been cleared of fraud crimes.

Matthew Tannin and Ralph Cioffi were accused of misleading clients regarding the safety of their money.

Prosecutors had previously suggested that they did so while reducing their stake in funds without informing investors.

However, the pair have been acquitted of wire fraud charges, while Mr Cioffi was also cleared on insider trading.

Email communications were a key part of the prosecution's case, but defence layers argued that the meanings of these had been taken out of context.

Brenton Campbell, US attorney, commented on the verdict: "Of course we are disappointed by the outcome in this case, but the jurors have spoken."

The case was seen by many as the first attempt by authorities to bring criminal charges against, and blame to, individuals in relation to the economic downturn.

Last week, Michael Findlay avoided jail and was instead given community service for an attempted fraud.

At Aberdeen Sherriff Court, Findlay admitted to attempting to defraud a bank of £66,000.

If you require advice on Corporate Fraud please call us on +44 (0)20 7831 0101 and ask for Dan Hyde.