7th Circ. Backs BNY Mellon In $312M Sentinel Claim Fight

Law360, Chicago (August 9, 2012, 7:39 PM EDT) -- Sentinel Management Group Inc.'s liquidating trustee lost his challenge to a $312 million claim by Bank of New York Mellon Corp. on Thursday, when the Seventh Circuit ruled he had not shown Sentinel's use of client funds as collateral for a bank loan qualified as fraudulent transfers.

The appeals court declined to revive the suit Sentinel trustee Frederick J. Grede launched against the bank after it filed a claim for payment of the $312 million Sentinel had outstanding on a line of credit with BNY Mellon...
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