March 25 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
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
(Reporting by Jonathan Stempel in New York; Editing by Lisa