Feds looking at inside action at Bear Stearns funds

The Securities & Exchange Commission and the U.S. Attorney's office in Brooklyn are reportedly looking into whether Ralph Cioffi redeemed personal money from Bear Stearns hedge funds, as they were beginning to falter. The big issue is whether this occurred at a time when external investors were told they could not redeem funds. Business Week notes that the inability to get money back was a gargantuan frustration for many customers. Investors began requesting redemptions in February, but they told they could not redeem funds until the end of June. But in early June, they were told they could not redeem funds. You can bet these guys are giving investigators an earful.  

For more:
- here's the Business Week article

Related articles:
- SEC probing problems at Bear Stearns fund
- Behind the Bear Stearns hedge fund fiasco