Sentinel Trustee Sues BoNY For $550M

Law360, New York (March 5, 2008, 12:00 AM EST) -- The Chapter 11 trustee in the bankruptcy of money manager Sentinel Capital Management has initiated another adversary proceeding, this time seeking $550 million from The Bank of New York for its role in Sentinel's collapse.

In an adversary proceeding filed Monday in the U.S. Bankruptcy Court for the Northern District of Illinois, Trustee Frederick J. Grede claims that misconduct by the bank directly contributed to the collapse of Sentinel and demands $550 million in damages.

Grede's suit alleges that the bank created accounts for Sentinel that...
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