Ex-Bear Stearns Managers Cioffi, Tannin to Pay $1.05 Million in SEC Suit
By Thom Weidlich – Feb 13, 2012 11:43 AM ET
Former Bear Stearns Cos. (2942331Q) hedge-fund managers Ralph Cioffi and Matthew Tannin, acquitted in 2009 of criminal charges they misled investors, agreed to pay $1.05 million to settle a related civil case brought by the U.S. Securities and Exchange Commission.
Cioffi agreed to pay $800,000 and accept a three-year ban from the securities industry and Tannin agreed to pay $250,000 and to a two-year ban, SEC attorney John Worland told U.S. District Judge Frederic Block in Brooklyn, New York, in a hearing today.
In November 2009, a federal jury found Cioffi and Tannin not guilty of conspiracy and securities and wire fraud in the first criminal trial stemming from a federal probe of the collapse of the subprime-mortgage market. Cioffi, 56, was portfolio manager for the hedge funds. Tannin, 50, was their chief operating officer. The government said investors lost $1.6 billion.
“This case is being settled for, relatively speaking, chump change,” Block said at the hearing.
He said that he was “inclined to sign off on it.” He asked lawyers for both sides to file more papers by next week.
After the hearing, Cioffi’s lawyer, Edward Little of Hughes Hubbard & Reed LLP, and Tannin’s lawyer, Nina Beattie of Brune & Richard LLP, declined to comment.
John Nester, an SEC spokesman, didn’t immediately respond to an e-mail seeking comment on the settlement.
The civil case is Securities and Exchange Commission v. Cioffi, 08-cv-2457, and the criminal case is U.S. v. Cioffi, 08- CR-00415, U.S. District Court, Eastern District of New York (Brooklyn).
To contact the reporter on this story: Thom Weidlich in Brooklyn, New York, federal court at firstname.lastname@example.org.
To contact the editor responsible for this story: Michael Hytha at email@example.com.