SEC Fraud

In a separate indictment released on Thursday, the Securities and Exchange Commission charged the same two ex-Bear Stearns fund managers with defrauding investors as the subprime mortgage market began to collapse. The civil indictment comes at the same time as the U.S. Justice Department’s criminal indictment.

I’m surprised it took this long to get an indictment considering the funds failed in the summer of 2007. The two men are charged with defrauding investors and costing them at least $1 billion through their actions. The main charge is that they covered up the problems with their investments and then tried to get their own money out before recovering investors money.

Sifting Through the SEC Charges of Two Former Bear Stearns Managers [Fox Business]