OK, let’s get this right. The two hedge fund managers are being arrested on an entirely different case. Don’t bunch up the smarter criminal with the dumb criminals (although both got caught).
The hedge fund guys are basically smart guys fooling smart guys…
Former Bear Stearns Cos. hedge fund managers Ralph Cioffi and Matthew Tannin were indicted for mail fraud and conspiracy in the first prosecution stemming from a federal investigation of last year’s mortgage-market collapse.
The two men were charged with misleading investors about the health of two Bear Stearns hedge funds whose implosion ignited the subprime mortgage crisis. Cioffi was also charged with insider trading in the indictment, which cites a series of e-mails between the two men. They both face as much as 20 years in prison if convicted of conspiracy, and Cioffi faces an additional 20-year term if found guilty of insider trading.
The 400 plus were dumb guys fooling even dumber guys
Federal prosecutors have charged more than 400 people across the U.S. in a crackdown against mortgage fraud, as the government stepped up efforts to address the subprime loan crisis
