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Ralph Cioffi, 53, the portfolio manager for the hedge funds, and Matthew Tannin, 48, the funds' chief operating officer, were found not guilty on all counts against them by the jury hearing the trial.
The jury reached its verdict after less than six hours of deliberation.
The two men went to trial Oct. 13 on charges of conspiracy, wire fraud and securities fraud in Federal distrcit court in Brooklyn. Cioffi faced an additional charge of insider trading. The managers faced up to 20 years in jail had they been convicted on the most serious wire fraud charges.
The two executives still face other charges in Manhattan Federal court. But the acquittal in this first case may make it harder for prosecutors to bring charges against other Wall Street insiders involved in the subprime mortgage bubble.
Posted November 10th, 2009 by Sandy Smith
