Mass. Regulators File Suit Against Bear Stearns

Law360, New York (November 14, 2007, 12:00 AM EST) -- The state of Massachusetts has become the latest regulator to target Bear Stearns Asset Management Inc. over the collapse of two of its funds due to subprime mortgage investments, filing a securities suit against the investment bank alleging violation of Massachusetts state law.

The administrative complaint, filed on Wednesday by Secretary of the Commonwealth William Galvin, alleges that investors in the Bear Stearns High-Grade Structured Credit Strategies Fund and the Enhanced Leverage Fund were victims of a poorly designed conflict-of-interest management program, which allowed the funds...
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