Cioffi departs Bear Stearns amid federal probe

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Ralph Cioffi, manager of two Bear Stearns structured credit hedge funds that collapsed this summer, has left the firm as U.S. federal prosecutors investigate whether he improperly withdrew money from the funds before they imploded.

The U.S. attorney’s office in Brooklyn and the U.S. Securities and Exchange Commission are looking into Cioffi’s withdrawal as part of a broader regulator review, according to published reports. Cioffi has not been charged with wrongdoing. The $900 million High-Grade Structured Credit Strategies Fund and its more highly levered sister, the $600 million High-Grade Structured Credit Strategies Enhanced Leverage Fund, declared bankruptcy on July