Criminal investigation into Bear Stearns Funds Focuses on Conference Call

A criminal investigation into two failed Bear Stearns funds is focusing on an April 25, 2007 conference call with investors by fund manager Ralph Cioffi.  Two comments in particular: Cioffi said he was "cautiously optimistic" about the funds, while internal emails expressed concern about the funds' ability to withstand the credit crunch.  In addition, Cioffi said he didn't have time to teach "CDO 101" in response to a question about whether the CDOs in the High-Grade Fund were tied to subprime loans.  Cioffi also withdrew $2 million of his own money from one of the funds in March.  WSJ, Bear Probe May Center on Investor Call.