A case against a former Bear Stearns hedge fund manager has been further complicated with prosecutors alleging that the manager repeatedly ignored warnings that he was violating conflict of interest, according to Reuters. Former Bear manager Ralph Cioffi, who was charged along with colleague Matthew Tannin in June 2008 with misleading investors about the health of two Bear hedge funds, was “repeatedly counseled” about potential conflicts of interest by his compliance staff, yet made no changes to his conduct, according to prosecutors. Both Cioffi and Tannin face fraud charges related to a $1.4 billion loss for investors when Bear’s hedge funds failed in 2007.
Prosecutors: Bear Stearns Manager Violated Conflict of Interest
A potential violation of conflict of interest has been tacked onto the charges facing ex-Bear fund manager Ralph Cioffi.
August 19, 2009