For anyone out there in the world that has seen the movie Wall Street staring Michael Douglas as Gordon Gecko, and Charlie Sheen who plays Bud Fox, this scene seems all too familiar. 2 extremely wealthy executives being dragged out of their buildings wearing handcuffs behind their backs. Their names are Matthew Tannin and Ralph Cioffi. These guys were falsifying information regarding the health of subprime mortgage hedge funds they were pitching to investors just before the real estate market went belly up.
One example is Cioffi extracting $2 million of his personal investment in The Enhanced Leverage Fund in March 2007, while still pitching a confident outlook to other investors to encourage them to come in with more money. If this Cioffi guy was so confident in this fund, why would he be lessening his exposure in his personal investment in the fund? The truth is, he and Tannin new that this fund was going south and they decided to save their own behinds rather than do the right thing. Now there are both getting burned.
It's up to their defense attorneys to attempt to bail them out of this mess that they have created for themselves, as well as the the industry in general. With the email paper trail that has been uncovered, it's not looking very good for either of them.
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