Blurt: Seven Days Staff Blog

NOTE: Blurt has been retired and is no longer updated regularly. For new content, follow these links:

OFF MESSAGE: Vermont News and Politics
BITE CLUB: Food and Drink Blog

« Update on Chen Candidacy for Lt. Gov | Main | Bush Plans Monday Visit to Vermont »

June 19, 2008

Ralph Cioffi Arrested for Role In Subprime Debacle

Ralph Cioffi — a South Burlington native, St. Michael's College graduate and Bear Stearns hedge fund manager — was arrested this morning for his role in the collapse of two funds, sparking the global credit crisis that brought down the subprime lending industry.

Business Week did a pretty good job of explaining the investigation that led to the arrest of Cioffi and fellow fund manager, Matthew Tannin, who were both charged with eight counts of wire and securities fraud.

This report by Bloomberg found Cioffi, a member of St. Mike's Board of Trustees from 1992 to 1996, to be a well-regarded family man as well as "a pioneer" in structured finance.

Cioffi also was charged with insider trading. He allegedly pulled $2 million of his own $6 million investment in the hedge funds into another fund, even as he touted them to potential investors.

More details are expected from the U.S. attorney office in Brooklyn later today. 

Blogged with the Flock Browser

Ciotti or Cioffi ?

Cioffi, it is. Corrected. Thanks.

I went to college with Ralph at Saint Michael's. Class of '78. We were in the same business classes. I knew he was a "go getter" then but had no idea this is what it would lead to.

The comments to this entry are closed.

Stuck in VT (VIDEOS)

Solid State (Music)

Mistress Maeve (Sex)

All Rights Reserved © Da Capo Publishing Inc. 1995-2012 | PO Box 1164, Burlington, VT 05402-1164 | 802-864-5684