NEW YORK (CNNMoney.com) -- Two former Bear Stearns hedge fund managers were found not guilty on all charges on Tuesday in the first major criminal trial stemming from the housing and financial meltdown. A jury in U.S. District Court in Brooklyn, N.Y., acquitted Ralph Cioffi and Matthew Tannin. Both had worked as hedge fund managers at Bear Stearns, which went bankrupt in March 2008. Federal prosecutors had accused Cioffi and Tannin of falsely inflating the value of their portfolios, even as they knew that the mortgage-backed assets in the funds were at risk of collapse.