Today, in the first criminal prosecution arising out of the subprime crisis, a jury acquitted two former Bear Stearns hedge fund managers, Matthew Tannin and Ralph Cioffi, of securities, wire and mail fraud. The government had alleged that Tannin and Cioffi misled investors about the financial condition of their two hedge funds, which were heavily invested in subprime mortgages and which ultimately collapsed in 2007, costing investors approximately $1.5 billion. In addition, Mr. Cioffi was acquitted of insider trading charges arising out of alleged misrepresentations to investors about his personal investments. According to news sources, after the verdict, some jurors told reporters that they concluded the evidence against Cioffi and Tannin was flimsy and contradictory. Others suggested the pair were being blamed for market forces beyond their control.