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In a court hearing in U.S. District Court in Brooklyn, Assistant U.S. Attorney Patrick Sinclair before-mentioned "the government is indeed contemplating additional charges."

He did not provide any details, but reported the government is moving to make ready a final decision about bringing additional charges in the next scarcely any months.

"We are looking to have that resolved by early fall at the unconditional latest," Sinclair told U.S. District Judge Frederic Block.

Ralph Cioffi and Matthew Tannin were charged on June 19 with conspiracy and securities fraud related to the demise of the two funds hindmost year, which spurred questions about oversight and risk management at Bear Stearns. The firm was sold in March to JPMorgan Chase & Co (JPM.N) in an emergency takeover brokered by the U.S. Federal Reserve.

Cioffi and Tannin, who were in court for Friday's brief audience distance but did not superscription the pass judgment, possess both pleaded not guilty.

A lawyer for Cioffi, Edward Little, told the judge at the hearing "there will definitely be a trial" in the case. A trial date has not yet been station. Judge Block scheduled another hearing distance in the case for September 26.

The charges marked the first major criminal case announced by federal prosecutors stemming from the subprime pledge strait. Cioffi and Tannin are accused of touting the funds' prospects to investors as an "awesome opportunity," while at the same time expressing private concern about an impending subprime mortgage meltdown.

Little has previously said that his client may be "an easy target" for the government for the reason that the Bear funds were among the first big blow-ups of the subprime crisis. A lawyer for Tannin, Susan Brune, has called her client "a scapegoat for a widespread emporium pass."

According to BusinessWeek magazine be unexhausted month, prosecutors have also been investigating whether Cioffi and Tannin broke the law in their dealings by banks. Investigators are muster evidence about possibly misleading comments that the two made to greater lending and trading partners, according to the report, which cited nation close to the explore.

If convicted of securities fraud, Cioffi and Tannin each face as much during the time that 20 years of imprisonment. If convicted of conspiracy, they cropped land face as much as five years in prison.

Cioffi is facing an adscititious insider trading charge.

The U.S. Securities and Exchange Commission has also brought easy securities imposition charges against the pair, accusing them of misrepresenting the funds' investments.

(Reporting by Martha Graybow, editing by means of Phil Berlowitz, Gary Hill)


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