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

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Saxby: Not All EBITDA Is Created Equal

Nov 30 2017 | 8:02pm ET

Record levels of dry powder are driving competition among private equity firms to...

 

From the current issue of