Ex-Sentinel CEO found guilty over $500 million fraud

March 25 Tue Mar 25, 2014 5:27pm EDT

March 25 (Reuters) - The former chief executive officer of Sentinel Management Group Inc was found guilty on Tuesday of defrauding customers out of more than $500 million before the Illinois-based firm collapsed in August 2007, federal prosecutors in Chicago said.

Jurors deliberated less than two hours in Chicago federal court before finding Eric Bloom, 49, of Northbrook, Illinois, guilty on 18 counts of wire fraud and one count of investment advisor fraud, prosecutors said.

A lawyer for Bloom did not immediately respond to a request for comment.

Bloom and co-defendant Charles Mosley, who had been a senior vice president and head trader at Sentinel, were accused of pledging customer securities as collateral for a bank credit line that funded a "house" trading portfolio meant to benefit them and Bloom's family.

Mosley, who lives in Vernon Hills, Illinois, pleaded guilty in October to two counts of investment adviser fraud and is awaiting sentencing, prosecutors said. Sentinel was based in Northbrook. (Reporting by Jonathan Stempel in New York; Editing by Lisa Shumaker)