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Article: SEC Says Sentinel Engaged in Fraud
- Article from:
- Daily News
- Article date:
- August 21, 2007
- Author:
CopyrightCopyright 2007 Daily News. Provided by ProQuest LLC. (Hide copyright information)
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NEW YORK (HedgeWorld.com) - Sentinel Management Group, the
troubled cash manager that has hedge funds among its clients,
defrauded its investors and placed them at risk of serious loss
according to a complaint filed by the Securities and Exchange
Commission. The charges came Monday [Aug. 20] after Sentinel filed
for Chapter 11 bankruptcy protection late last week.
In a civil complaint filed in federal court in Chicago, the SEC
accused Northbrook, Ill.-based Sentinel of misappropriating its
investors' assets by transferring at least $460 million in securities
from those investors' accounts to Sentinel's own proprietary account,
using these securities as collateral for Sentinel's borrowing ...