Recall that the criminal trial of Ralph Cioffi and Matthew Tannin, both hedge fund executives at Bear Stearns, ended with a much-discussed acquittal.

Prosecutors relied heavily on email evidence, which in the end just wasn’t that persuasive to the jury. The outcome of that case loomed large in the broad prosecutorial effort to hold executives of the big, failed firms, such as Lehman Brothers, accountable for their actions during the financial crisis. If the jury had convicted Cioffi and Tannin, prosecutors would likely have been emboldened to bring more cases.

As it turns out, the SEC continued with its civil case, and a trial was set to begin today. But a settlement has apparently been struck, details of which will likely be released soon. The bottom line is that another trial will be avoided. This is the expected outcome.

CNBC notes that some experts questioned the wisdom of the SEC going to trial with a case that has already proven unsuccessful. Then again, the burden of proof to convict in a civil trial is not nearly as high as in a criminal trial.

For more:
- here’s the article

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