In 2008, the Rove Republican Racket went after Bear Stearns hedge fund managers Ralph Cioffi and Matthew Tannin for the collapse of a hedge fund which lost $1.4 billion in July 2007 due to securities tied to the subprime loan market.
The government's case, in its second week of trial, has been extremely difficult for the Rove Racket.
The Federal Criminal Defense Blog writes:
The case does not appear to be going as the government had envisioned, with its own witnesses failing to support the allegations in the government's indictment. Even presiding U.S. District Judge Frederic Block has appeared irritated with the prosecution, at one point commenting on the prosecution's introduction of so many documents. Observers have noted that the government's alleged case against Cioffi and Tannin is built upon e-mails whose meaning often changes when placed in their surrounding context. Furthermore, when [a federal] prosecutor...asked [a witness] whether portfolio managers who intentionally give investors false and misleading information were guilty of a crime, Judge Block sustained an objection by the defense and gave the prosecution a stern warning.
So what has the Racket done to save its case? Try to introduce evidence of uncharged acts and allegations!
The Federal Criminal Defense Blog adds:
The Federal Criminal Defense Blog adds:
Additional evidence that the prosecution may be having a more difficult road than expected comes in the form of a letter request by the prosecution to Judge Block to introduce evidence of alleged uncharged acts by Cioffi and Tannin, filed on Sunday. The letter takes issue with Cioffi's and Tannin's counsels' arguments in opening statements to the jury to the effect that it was implausible that Cioffi and Tannin suddenly "went criminal" after the hedge funds had experienced months of positive growth and one flat month. In response, the prosecution seeks to introduce alleged evidence that Cioffi and Tannin allegedly defrauded Busey Bank several months earlier, in December 2006.
Read the entire article here.
