2 Former Bear Stearns Managers Face 20 years of Jail For Fraud Conspiracy! by Milota Sidorova

American FBI has finally pulled in to the massive investigation lightening fraud conspiracies behind the subprime mortgage crisis, that knocked out the majority of world's financial world. According the latest press, Justice Department in Washinghton has decided to start trial against more than four hundred charge-sheets having their fingers in the fat fraud pie, spreading out from Wall Street crashing down hundreds of misinformed investors.

Most of them were arrested during Wednesday and Thursday. However, media pressure strikes the case of two former Bear Stearns hedge managers. Ralph Cioffi, 52 and Matthew Tannin, 46 have been charged from concealing informations to investors and premediated fraud conspiracy.
Their continuously misstatement of income and assets, forged documentation, inflated appraisals and misrepresentation of buyer's intent to occupy property as primary residence led into loss of investor's at least $1,8 billion. Although, they did know the true.
Once again and shortly enough! Knowing the market crisis is about to fall, they advised and encouraged investors to put and extend hedge funds. Tannin himself, put his $2 million put of troubled fund and separated it without telling investment's group.

Both men face almost 20 years in prison. This morning they has been released on bond, accompanied their wives, making no official statement. The trial will begin 18th July.

Returning to Bear Stearns, New York based global investment banks, securities trading and brokerage firms declared to be badly damaged by the credit crisis in 2007. Just before the collapse in mid-year, it had more than $20 billion in assets. Whereas the corporation had been drowning till March 2008, the only one solution was buy out. JP Morgan Chase bought it for 10 dollars per share, a price far bellow its original value.

Cioffi and Tannin have been detected and charged due a series of proving internal e-mail communication.E-mail correspondence was the key evidence pleading guilty in the case of Credit Suisse Group banker Frank Quattrone, stock analysts Jack Grubman and Henry Blodget.

You are not guilty, until we prove you are guilty. That's how the famous American trial law works. However Cioffi's and Tannin's defenders loudly speak out, naïve arguments. It has happened to the whole world, so why do you accuse just our clients?

Smells like an expired fish tin to me.

related story: http://news.yahoo.com/s/ap/20080619/ap_on_bi_ge/bear_stearns_investigation;_ylt=ArSxUZ62.7rZzGjMvGJilz6s0NUE

by Milota Sidorova for PocketNews (http://pocketnews.tv)

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posted by Lucia Adamova