Comments on: My Thoughts on the Bear Stearns Hedge Fund Case http://www.senseoncents.com/2009/11/my-thoughts-on-the-bear-stearns-hedge-fund-case/ Navigating the Economic Landscape Fri, 19 Mar 2010 05:25:05 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Matt http://www.senseoncents.com/2009/11/my-thoughts-on-the-bear-stearns-hedge-fund-case/comment-page-1/#comment-7367 Matt Wed, 11 Nov 2009 17:52:06 +0000 http://www.senseoncents.com/?p=12768#comment-7367 It does appear that jury selection was a big part of this outcome. As you said, it appears that at least some of the jurors didn't understand this case and the subject matter. Not surprising really given that it is complicated. I agree that if Cioffi left $4 million of his own money in the fund, then I wouldn't have even brought it up. It does appear that jury selection was a big part of this outcome. As you said, it appears that at least some of the jurors didn’t understand this case and the subject matter. Not surprising really given that it is complicated. I agree that if Cioffi left $4 million of his own money in the fund, then I wouldn’t have even brought it up.

]]> By: Larry Doyle http://www.senseoncents.com/2009/11/my-thoughts-on-the-bear-stearns-hedge-fund-case/comment-page-1/#comment-7365 Larry Doyle Wed, 11 Nov 2009 16:55:33 +0000 http://www.senseoncents.com/?p=12768#comment-7365 Matt, I do not disagree in regard to your first point. Working hard has nothing to do with committing fraud or not. Does that go to the depth of knowledge and understanding of the situation Most likely. Why do so many defendants spend so much money on experts in jury analysis and selection? Very often that jury selection process is where these case are won and lost. In regard to point two, while Cioffi took $2 million out, he supposedly left $4 million in the fund. Knowing that I would not have even attempted to bring this charge. I still believe the crux of the case revolves around proper representation of the investment portfolio. I never heard any of the material or info pertaining to that. Matt,

I do not disagree in regard to your first point. Working hard has nothing to do with committing fraud or not. Does that go to the depth of knowledge and understanding of the situation Most likely. Why do so many defendants spend so much money on experts in jury analysis and selection? Very often that jury selection process is where these case are won and lost.

In regard to point two, while Cioffi took $2 million out, he supposedly left $4 million in the fund. Knowing that I would not have even attempted to bring this charge.

I still believe the crux of the case revolves around proper representation of the investment portfolio. I never heard any of the material or info pertaining to that.

]]> By: Matt http://www.senseoncents.com/2009/11/my-thoughts-on-the-bear-stearns-hedge-fund-case/comment-page-1/#comment-7364 Matt Wed, 11 Nov 2009 16:40:31 +0000 http://www.senseoncents.com/?p=12768#comment-7364 Larry - Some of the other juror's quotes after the trial are very confusing to me. One juror said "If this really was a fraud case, they wouldn't have worked that hard". Huh? What on earth does that have to do with anything? Bernard Madoff worked very hard too, but that didn't mean he was innocent. Criminals can and do work just as hard as anyone else. That is completely irrelevant. This juror was very impressed that these guys were at work at 4am. So? A lot of Wall Street executives start work very early and work long hours (as you well know Larry), that's just the nature of the industry. The juror assumed that they were working long hours because they were trying to save the funds. That's possible, but it's just as possible that they were working long hours to cover up their fraud so they wouldn't get caught and wouldn't get in trouble. I can't believe that was a primary reason to acquit them. That juror then said that she would invest her money with these guys. Are you kidding me? Another juror said that the fact that one of these guys moved his own personal money OUT OF the hedge fund in question and into another different Bear Stearns fund showed that it was not a fraud. Again, huh? Doesn't the fact that he moved his own personal money out of this hedge fund (regardless of what he then did with it) show that he personally did not believe this fund was a good, stable investment, but clearly did not share that personal belief with his clients? Matt Larry –

Some of the other juror’s quotes after the trial are very confusing to me. One juror said “If this really was a fraud case, they wouldn’t have worked that hard”. Huh? What on earth does that have to do with anything? Bernard Madoff worked very hard too, but that didn’t mean he was innocent. Criminals can and do work just as hard as anyone else. That is completely irrelevant. This juror was very impressed that these guys were at work at 4am. So? A lot of Wall Street executives start work very early and work long hours (as you well know Larry), that’s just the nature of the industry. The juror assumed that they were working long hours because they were trying to save the funds. That’s possible, but it’s just as possible that they were working long hours to cover up their fraud so they wouldn’t get caught and wouldn’t get in trouble. I can’t believe that was a primary reason to acquit them. That juror then said that she would invest her money with these guys. Are you kidding me?

Another juror said that the fact that one of these guys moved his own personal money OUT OF the hedge fund in question and into another different Bear Stearns fund showed that it was not a fraud. Again, huh? Doesn’t the fact that he moved his own personal money out of this hedge fund (regardless of what he then did with it) show that he personally did not believe this fund was a good, stable investment, but clearly did not share that personal belief with his clients?

Matt

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