Those accused of white collar crimes in recent months – including but not limited to the man formerly known as Sir Allen Stanford and one Raj Rajaratnam – probably breathed a sigh of relief on Tuesday, after a Brooklyn jury ruled in favour of two former Bear Stearns fund managers.
According to the ruling by a jury in the Federal District Court in Brooklyn, Ralph Cioffi and Matthew Tannin did not lie to investors when they presented an upbeat picture of the funds they managed. These funds, readers may recall, were at the time plummeting in value.
Crucially for those watching from federal detention centers, Mr Cioffi was also found not guilty of insider trading charges on accusations he pulled $2m he had invested in one of the failing funds (all the while telling investors he was adding to his position.)
The ruling is a blow to securities regulators and federal prosecutors, who have taken a much more aggressive stance on alleged white collar fraud since Madoff – and who may, indeed, have been heartened by the 150-year sentence doled out in that case.
Related links:
Cioffi Lawyer: Case Lacks ‘Credibility’ – WSJ
The perils of corporate email, Bear Stearns edition – FT Alphaville
Ex-Bear Stearns manager wins email ruling – Reuters