Sentinel Chief Trial Nears End

Mar 25 2014 | 10:19am ET

The former CEO of cash-management firm Sentinel Management Group should be convicted of defrauding hedge fund clients, a prosecutor insisted at the closing of Eric Bloom’s trial yesterday.

Bloom is accused of ripping off at least 70 investors, including commodity pools and hedge funds, of more than $500 million at Sentinel, which managed short-term cash portfolios. The firm collapsed in 2007, telling investors that it had to freeze its assets due to market turbulence. In fact, prosecutor Patrick Otlewski said, it actually put client assets up as collateral to lever its own trading account.

“Sentinel was a fraud,” Otlewski said.

Bloom’s lawyer, Terence Campbell, told the Chicago federal jury that their client acted in good faith, and that prosecutors failed to prove their case beyond a reasonable doubt.

If convicted, Bloom faces hundreds of years in prison.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of