* Jury hears closing summation by prosecution

* Case expected to go to jury on Monday

By Grant McCool

NEW YORK, Nov 5 (Reuters) - Two former Bear Stearns hedge fund managers on trial for fraud told "black and white lies" to investors in 2007 about the health of their funds even though they were seeing some of the worst market conditions ever, a U.S. prosecutor told a jury on Thursday.

In a closing summation of evidence in the trial that began on Oct. 13, prosecutor Ilene Jaroslaw tried to scorch defense arguments that the managers, Ralph Cioffi and Matthew Tannin, could not predict at such an early stage of the financial crisis how the markets would turn out.

"This case is not about hedge fund strategy or what happened in the market in 2007," Jaroslaw told the Brooklyn, New York, federal court jury, which is expected to begin deliberations on Monday. "What it is about, is the two defendants lied to their investors. It's not about the future... but a case of black and white lies."

Cioffi, 53 and Tannin, 48, have denied charges of securities fraud, wire fraud and conspiracy in a June 2008 indictment that made them the first high-profile Wall Streeters to be criminally charged in a case stemming from subprime mortgage-backed securities that fueled the market meltdown.

The 12 jurors were selected after answering written and oral questions about whether they could be fair and impartial in an era of lost jobs, government bailouts of banks and the Wall Street financial crisis.

The charges against the two men carry a possible prison sentence of 20 years.