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Two Big Not Guilty Verdicts in Bear Stearns Case

Lost in today’s news cycle were two big not guilty verdicts from the U.S. District Court in Brooklyn, New York.

The two fund managers were accused of, among other things, in the 58 page indictment of knowing of Bear Stearns hedge funds (which were heavily invested in sub-prime mortgages) imminent demise, but “rather than disclosing the true state of the Funds … agreed to make misrepresentations in the ultimately futile hope that the Funds’ bleak prospects would change.” A link to the ABC News story detailing the verdict can be found here.  Many white-collar crime trial watchers may note that the lawyer for one of the accused drew the following important distinction for the jurors:   “This is not an indictment of Bear Stearns.  This is a narrow case about two fund managers specifically relating to what they said to investors and others and about whether or not they had criminal intent,” argued David Siegal, a partner with the law firm Haynes and Boone

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