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Bear Stearns Executives Let Off the Hook, Verdict of Not Guilty of Securities Fraud

Posted on | November 11, 2009 | 2 Comments

Despite huge mistakes and many lies, Bear Stearns executives were acquitted of their subprime fraud charges. Ralph Cioffi and Matthew Tannin were both found not guilty by jurors today after a month long trial. Bother were charged with 3 counts of securities fraud and 3 counts of wire fraud, while Cioffi had an additional charge for insider trading. The actions of these 2 men cost 300 investors $1.6 billion dollars, and the near bankruptcy of the company as a whole.

The question remains, how were they found not guilty by jurors? Based on the evidence presented, the jurors had no choice but to find them not guilty. While the subprime market was failing at a rapid speed both men were lying to investors informing them that the market would prevail and not to worry. When the trial began a number of emails were found between the two men confirming these lies but attorneys said they could have been taken “out of context”.

With a failing housing market, as a whole there is currently no room for error. American citizens sit around a point fingers at politicians for the current economic crisis, and then when news like this arises are dumfounded at the idea that executives are the men and women driving these companies and our economy into the ground.

With proof at hand these two executives were acquitted, will gladly keep their salaries and continue to perform shady acts of insider trading. Instead of pointing fingers, why isn’t America investigating these events further and holding people accountable? The amount of corruption in corporate America today is ruining our economy one day at a time.

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Author: Sylvia Wayne

Category: Current News

Comments

2 Responses to “Bear Stearns Executives Let Off the Hook, Verdict of Not Guilty of Securities Fraud”

  1. Frank Fitton
    November 11th, 2009 @ 12:25 pm

    Sure people are going to be mad about the fallout from the financial crisis and maybe looking back on it executives could have handled things differently. However, proving that these actions were in fact criminal is going to be virtually impossible. Nobody tells their customers the exact inner workings and goings on in pretty much any industry. You always try and put a rosy hue on things and hope that they can be turned around. That’s just how you try and keep your customers happy. If you constantly told everyone about possible worst case scenarios, I don’t think many people would be in business in this country.

    Its horrible that people lost their money the way they did, but that just is an inherent risk you take when investing. There’s nothing criminal about mismanagement. These men were faced with some unexpected events that they weren’t prepared for or knew how to handle.

    Now are we supposed to be happy that these innocent men were vindicated, certainly not in my opinion. Their actions while not 100 percent above the board and ethical, weren’t criminal either. Their actions, as well as the actions of most people on Wall Street even to this day, fall into a sort of gray area. When things are going good we can applaud and praise those people for their gray area antics. When things go bad we go looking for a scapegoat.

    Check out my blog on the Bear Stearns fraud acquittal and the fallout and ramifications from it, at…. http://www.thedebtgazette.com/2009/11/bear-stearns-hedge-fund-acqitted/

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