<div><h1>VERDICT: NOT GUILTY </h1><p>Were they simply lousy money managers, or did they lie to clients? A federal jury in Brooklyn apparently decided on the former, acquitting on Nov. 10 two former Bear Stearns hedge fund managers, Ralph Cioffi and Matthew Tannin, of securities fraud. Many viewed the trial as a test case for prosecutions growing out of the subprime crash. Cioffi and Tannin oversaw funds that collapsed in 2007 after making huge bets on mortgage securities, resulting in $1.6 billion in losses. Prosecutors alleged that they deceived investors, waxing optimistic about the funds while in private they foresaw disaster. But that's often tough to prove, and jurors didn't buy it. Cioffi, 53, and Tannin, 48, still face civil charges brought by the SEC. </p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=63809481&bid=informcom" /></div><div id="copyright"><div>

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