Sentinel Management has plunged further into the financial
abyss after regulators charged the firm with fraud and freed
broker access to a large portion of funds while the firm filed
In just over a weeks time, Sentinel has gone from a
trusted short-term depository for some of the top futures
brokers in the industry, hedge funds and high net worth
individuals into a firm that is now charged with a number of
Sentinel is accused of misappropriating, commingling client
funds and leveraging those securities without the knowledge of
its customers, according to several charges filed by Securities
and Exchange Commission (SEC). As a consequence, Sentinel face
charges of illegally transferring at least $460m in
securities from client investment accounts into Sentinels
proprietary house account. Sentinel also used
securities from client accounts as collateral to obtain a $321m
line of credit as well as leveraged financing, SEC said.
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