U.S. prosecutors are preparing to file criminal charges against managers of two Bear Stearns hedge funds whose collapse helped kick off the credit crisis last year, the Wall Street Journal reported on Monday.
The U.S. Attorney's office in Brooklyn, New York will conclude interviews this week and has indicated to lawyers that indictments may follow, the newspaper said, citing people familiar with the case.
Former bond portfolio managers Ralph Cioffi and Matthew Tannin could be charged with securities fraud within the next week, according to one of people familiar with the matter.
There was no indication that charges would be filed against Bear Stearns, which was acquired by J.P. Morgan Chase, or its top management, the newspaper said.
Tannin declined to comment, and neither Cioffi nor representatives for Bear Stearns could be reached for comment. A spokesman for JPMorgan and a spokesman for the U.S. Attorney for New York's Eastern District were not immediately available.