Former Bear managers may face more woes

The government is mulling additional charges against ex-hedge fund managers Ralph Cioffi and Matt Tannin.

The former hedge fund managers at The Bear Stearns Cos. Inc. who were indicted for fraud and conspiracy last month may face additional charges, according to published reports.
At a Friday hearing in Brooklyn, New York, assistant U.S. Attorney Patrick Sinclair told U.S. District Judge Frederic Block that the government “is indeed contemplating additional charges” against Ralph Cioffi and Matt Tannin. Mr. Sinclair didn’t provide specifics about the potential new charges but said that they likely would be filed in the fall.
Mr. Block put off setting a trial date because of the continuing investigation and due to the enormity of the case.
Bear Stearns of New York shuttered the High-Grade Structured Credit Strategies Enhanced Leverage Fund and the High-Grade Structured Credit Strategies Fund, both hedge funds, last July as the value of the firm’s mortgage-backed securities sank, costing investors $1.8 billion.
Mr. Cioffi and Mr. Tannin pleaded not guilty last month to conspiracy and fraud charges, and accused prosecutors of making them scapegoats for the financial market crisis, according to the Associated Press.
Both former executives are free on bond and face up to 25 years in jail if convicted.