The Real Deal Miami

NY prosecutors in Bear Stearns real estate case ask for delay

September 17, 2009 08:47AM

Prosecutors in the case against former Bear Stearns hedge fund manager Ralph Cioffi have asked a judge to postpone his ruling on evidence against the defendant. The prosecution said they need more time to examine information that could prove Cioffi improperly collateralized his investment in the fund for a real estate deal in Florida. Cioffi, along with former colleague and hedge fund manager Matthew Tannin, are set to go on trial next month for their alleged fraud. In a written statement, assistant Brooklyn U.S. attorneys Ilene Jaroslaw, James McGovern and Patrick Sinclair said that more time was needed to make a complete account of information available on Cioffi’s alleged impropriety. “The government discovered that, despite Bear Stearns Asset Management’s clear instructions to the contrary, Cioffi actually pledged his investment in the Enhanced Fund as collateral for the Florida construction loan anyway,” the prosecutors said.