Wall Street Hype Vs. Outright Fraud: A Test Case Fails

Law360, New York (November 20, 2009, 12:37 PM EST) -- The indictments of former Bear Stearns hedge fund managers Ralph Cioffi and Matthew Tannin were originally billed as a test case for drawing the line between acceptable Wall Street hype and outright fraud.

But in the end the jury's swift decision to acquit both defendants underscored the difficult task that prosecutors set for themselves in trying to prove that making bad business decisions was equal to breaking the law.

Part of the problem was that a lot has changed since the charges were originally filed....
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