Friday, 22 August 2014
Last updated 2 hours ago
Jun 23 2008 | 2:00am ET
The Securities and Exchange Commission has charged two former Sentinel Management Group executives, Eric Bloom and Charles Mosley, for allegedly defrauding clients, including hedge funds, to the tune of several hundred million dollars.
Prior to filing for bankruptcy in August, Sentinel managed short-term cash investment portfolios for various advisory firms, including hedge funds. In an amended complaint filed this week in federal court in Chicago, the SEC added Bloom and Mosley as defendants in the action it instituted against Sentinel last summer.
Bloom served as CEO of Sentinel for almost 20 years, and Mosley was head trader and portfolio manager at the firm.
The SEC alleges that for about four years, Bloom and Mosley exposed their clients to substantial risks by engaging in an undisclosed investment strategy that relied extensively on leverage and repurchase transactions. Additionally, the pair allegedly misused client portfolio assets to finance risky leveraged trading for the benefit of Sentinel's house portfolio, which was owned by Sentinel insiders, including Bloom and Mosley.
The SEC is seeking a permanent injunction against the defendants as well as disgorgement, prejudgment interest, and civil penalties.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note