Ralph Cioffi and Matthew Tannin have pleaded not guilty to conspiracy and fraud charges in the first criminal case to hit Wall Street amid the housing market meltdown.

Prosecutors claim the pair hid warning signs that their funds were about to implode. The alleged fraud cost 300 investors about $1.6 billion.

The fallout nearly led to the demise of Bear Stearns itself. The firm barely avoided bankruptcy in a rescue buyout by JPMorgan Chase & Co.

Deliberations were under way in federal court in Brooklyn.

A service of YellowBrix, Inc.