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Federal criminal and civil charges may be forthcoming as Federal prosecutors and the SEC investigate hedge funds sponsored by Bear Stearns. According to Bloomberg and the Wall Street Journal, Fed officials may bring criminal charges against former hedge fund managers Ralph Cioffi, and Matthew Tannin.

Cioffi managed two Bear Stearns hedge funds that collapsed under the weight of heavy investments in subprime related assets. Tannin assisted Cioffi in managing the two funds.

Cioffi, Tannin and Bear Stearns are named as defendants a seperate lawsuit filed by Barclays PLC. The suit accuses Cioffi of withdrawing a personal investment in the fund in March 2007 at the same time Bear Stearns was persuading Barclays to increase its investment.