Sentinel charged with fraud
Wednesday, August 22, 2007
THE US Securities and Exchange Commission filed civil fraud charges on Monday against Sentinel Management Group Inc, the cash management firm serving the US futures industry that filed for Chapter 11 bankruptcy protection late on Friday.
In a complaint filed in US District Court in Chicago, the SEC accused Sentinel of defrauding clients by improperly commingling, misappropriating and leveraging their securities without their knowledge in violation of the Investment Advisers Act.
The SEC alleged that Sentinel transferred at least US$460 million in securities from client investment accounts to Sentinel's proprietary "house" account.
Sentinel also used securities from client accounts as collateral to obtain a US$321 million line of credit as well as additional leveraged financing, the SEC alleged.
The SEC also accused Sentinel of not disclosing to its clients it practices of "commingling", which involved transferring and misappropriating their assets.Reuters
In a complaint filed in US District Court in Chicago, the SEC accused Sentinel of defrauding clients by improperly commingling, misappropriating and leveraging their securities without their knowledge in violation of the Investment Advisers Act.
The SEC alleged that Sentinel transferred at least US$460 million in securities from client investment accounts to Sentinel's proprietary "house" account.
Sentinel also used securities from client accounts as collateral to obtain a US$321 million line of credit as well as additional leveraged financing, the SEC alleged.
The SEC also accused Sentinel of not disclosing to its clients it practices of "commingling", which involved transferring and misappropriating their assets.Reuters
Business Besides Oil
