BNY Transfers Hurt Sentinel Creditors, 7th Circ. Told

Law360, Chicago (September 8, 2011, 7:09 PM EDT) -- An attorney for Sentinel Management Group Inc.'s Chapter 11 trustee told a Seventh Circuit panel Thursday that Bank of New York Mellon Corp. breached its duties and harmed other creditors by accepting fraudulent transfers from Sentinel.

Catherine Steege of Jenner & Block LLP argued on behalf of trustee Frederick J. Grede in his bid to revive his Illinois suit against BNY Mellon seeking damages of $550 million from the bank, which the trustee claims improperly allowed Sentinel to mix customers' assets with its own holdings and...
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