Mosley head trader were indicted on federal fraud charges for allegedly defrauding more than 70 customers of more than $500 million before the firm collapsed in August 2007. Sentinel allegedly disguised these acts by providing falsified account statements. First, that Sentinel improperly commingled $460 million in securities from client's investment accounts into Sentinel's proprietary "house account", and secondly, that Sentinel used securities from their client's accounts as collateral to obtain a $321 million line of credit and other leveraged financing. District Court in Chicago, alleging that Sentinel had defrauded clients in two ways. That same day, the SEC filed a complaint in the U.S. On August 20, 2007, the NFA report was presented in bankruptcy court. and Velocity Futures LP, to sue Sentinel. This stopped the withdrawals, which caused two brokerages, Farr Financial Inc. The bankruptcy was filed after a judge sought to block Sentinel from selling assets to the hedge fund company Citadel Investment Group LLC. was hired to represent them in the bankruptcy petition. The law firm of Goldberg Kohn Bell Black Rosenbloom and Moritz Ltd. The filing stated that Sentinel estimated assets and liabilities as both exceeding $100 million, and estimated that it had over 200 creditors. Late on Friday, Augthe firm filed for Chapter 11 bankruptcy protection. The NFA found that "Sentinel failed to maintain adequate books and records, including records to demonstrate the location" of some accounts. On August 14, the National Futures Association visited Sentinel's offices to review the company's records and prepare a report. The letter stated in part that Sentinel Management Group is "concerned that we cannot meet any significant redemption requests without selling securities at deep discounts to their fair value and therefore causing unnecessary losses to our clients." Recent events Īccording to an Augclient letter posted on, the company contacted the Commodity Futures Trading Commission asking for approval to halt redemptions. It was founded by Philip Bloom and the CEO was his son, Eric A. Investments included short-term commercial paper, foreign currency, investment-grade bonds and Treasury notes, according to the Web site. Sentinel invested for clients such as managed-futures funds, high-net-worth individuals and hedge funds that want to be able to withdraw their cash quickly. Sentinel Management Group was a cash-management firm based in Northbrook, Illinois. Please introduce links to this page from related articles try the Find link tool for suggestions. This article is an orphan, as no other articles link to it.
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