Cioffi/Tannin Former Bear Stearns hedge fund managers busted by FBI

Report: 2 ex-Bear Stearns hedge fund managers likely to be indicted

Two former hedge fund managers at Bear Stearns are expected to be indicted this week on criminal charges of securities fraud, the Wall Street Journal reported today. The collapse of the funds helped precipitate the credit crisis that continues to rock the financial sector and beyond.

In a year-long investigation, the U.S. Attorney has sought evidence as to whether Ralph Cioffi and Matthew Tannin intentionally misled investors by presenting a rosy picture of the funds at a time when they were privately communicating with colleagues about their worries over how the investment vehicles would ride out weakness in the mortgage market, the Journal writes. Their indictments would be the first arising from the credit crisis.