Epstein Secrets

ole, Epstein repeatedly refers to Ralph Cioffi and Matthew Tannin, the Funds' managers, as "indicted fraudsters." As Epstein is now no doubt aware, Cioffi and Tannin were acquitted of all charges on November 10, 2009. 10 Epstein also alleges — correctly — that Spector approved an investment of $25 mil

new, highly risky and highly leveraged fund, which was viewed by many as an excellent investment opportunity and which was made available to every High Grade investor. Accordingly, Epstein was provided with the PPM for the Enhanced Fund dated June 30, 2006 (Exhibit C). As with the High Grade Fund, the ma

r for Audit Quality. Cayne: James E. Cayne, a director, Chairman of the Board and Chief Executive Officer of Bear Stearns during the Class Period. Cioffi: Ralph Cioffi, the Bear Steams trader who started and managed the High Grade Fund, a Managing Director of BSAM and a Director of BSC. CDOs: Collate

y developed by BSAM. The Hedge Funds' objective was to provide current income and capital appreciation in excess of LIBOR by investing primarily in High Grade structured financed securities, with an emphasis on long positions in triple-A and double-A rated asset backed securities, such as CDOs. The High G

y difficulties. I would say it's been, obviously there's a lot of market volatility but we've had no difficulties there." Barely two weeks earlier, Cioffi, a Senior Managing Director of BSAM and a member of Bear Stearns' Board of Directors, had written of the Funds' February results that "I can't belie

the housing market. 525. Moreover, despite the fact that Deloitte was obliged to be especially skeptical of related party transactions such as the High Grade fund bailout, Deloitte deliberately or recklessly disregarded the fact that the collateral the Company had received as a result of the bailout was