FTN, Sentinel Trustee Settle Bribery Case For $38.5M

Law360, New York (October 21, 2011, 9:10 PM EDT) -- FTN Financial Securities Corp. and others reached a $38.5 million settlement Friday in Illinois over claims from Sentinel Management Group Inc.'s bankruptcy trustee that two FTN employees bribed Sentinel's former head trader in order to sell risky structured finance products.

Sentinel trustee Frederick J. Grede sued FTN in 2008, claiming the company bribed Sentinel’s former head trader in a scheme to sell Sentinel hundreds of millions of dollars worth of risky structured finance products. The suit centers on two FTN employees, co-defendants Stephen M. Folan and...
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