Bear fund managers lied to investors, court is told
TWO former Bear Stearns managers whose hedge funds collapsed early in the financial crisis lied to investors to save their bonuses and reputation, a US prosecutor said in an opening statement at their trial on fraud charges.
Fund managers Ralph Cioffi and Matthew Tannin – the first Wall Streeters to face criminal charges since the credit crunch – have denied securities fraud and conspiracy.
“These two defendants lied to their investors to save their multimillion dollar bonuses,” assistant US attorney Patrick Sinclair told the jurors in the federal court in the New York.
“The defendants saw their successes coming to an end… to save their bonuses and their reputations they decided to commit a crime,” Sinclair said.
In addition to the charges that carry a possible prison sentence of 20 years, Cioffi is also accused of insider trading.