New trouble for former Bear Stearns execs

July 18, 2008 1:16:55 PM PDT
Prosecutors say they expect to bring more criminal charges against two former Bear Stearns hedge fund managers already charged with lying to investors about the collapse of the subprime mortgage market. At a hearing in Brooklyn federal court on Friday, prosecutor Patrick Sinclair said Ralph Cioffi and Matthew Tannin probably would get hit with the additional charges in the fall. He declined to say what kind of charges.

Sinclair also said evidence includes more than a million pages of documents. An indictment unsealed last month cited e-mails that reveal panic and disorder behind the scenes at the hedge funds as its investments began to slide.

Both men have pleaded not guilty to conspiracy and fraud charges and were released on bond. They face up to 20 years in prison if convicted.