Ralph Cioffi is a former Bear Stearns hedge fund manager. In June, 2008, Cioffi, along with former co-worker Matthew Tannin, were arrested by federal authorities in conjunction with their alleged involvement in the 2007 collapse of hedge funds under their control. The action was part of a Justice Department sweep dubbed "Operation Malicious Mortgage."
Cioffi's Alleged Crimes
According to an indictment filed in federal court, Cioffi allegedly withheld information about the health of two large hedge funds of which he was the founder and senior portfolio manager. Authorities allege that Cioffi knew that the funds were in danger of collapsing but concealed the risk of their imminent demise from investors.WNBC: Cioffi, Tannin Indictment (June 18, 2008)
Operation Malicious Mortgage
The federal government's crackdown on those alleged to have been involved in mortgage fraud went beyond the immediate scope of the mortgage industry. Through Bear Stearns, Cioffi and Tannin are alleged to have misled their investors about the subprime mortgage market.MSNBC: Video: Ex-Bear Stearns Execs Arrested (June 19, 2008) The pair were among the most high-profile of the 400 suspects arrested in the sweep.
