SEC Sues Bankrupt Sentinel For Fraud

Law360 (August 20, 2007, 12:00 AM EDT) -- The U.S. Securities and Exchange Commission reportedly filed suit against bankrupt investment firm Sentinel Management Group Inc. Monday, saying that its letter to investors falsely attributed its collapse to a liquidity drought and that it had actually imploded because it had mishandled investors' money.

That "undisclosed use of leverage, commingling and misappropriation of clients' securities,” according to the suit filed in the U.S. District Court for the Northern District of Illinois Chicago, meant the fund had mixed investors' funds into its house account without letting them...
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