{"id":1436,"date":"2014-04-24T21:52:14","date_gmt":"2014-04-24T21:52:14","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2014\/04\/exsentinel_ceo_is_convicted_of"},"modified":"2022-04-12T13:18:53","modified_gmt":"2022-04-12T18:18:53","slug":"exsentinel-ceo-is-convicted-of","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/exsentinel-ceo-is-convicted-of\/","title":{"rendered":"Ex-Sentinel CEO is Convicted of $500M Fraud"},"content":{"rendered":"

Eric Bloom, the CEO of Sentinel Management Group, Inc., the now bankrupt hedge fund, has been convicted of bilking over 70 customers of more than $500 million prior to the firm’s collapse. According to the U.S. Department of Justice, Bloom misappropriated securities that belonged to customers when he used the financial instruments as collateral to get a loan for Sentinel from Bank of New York Mellon Corp. (BK). The loan was partially used to buy risky illiquid securities for a trading portfolio to benefit Bloom, other Sentinel officers, corporations controlled by his family, and his relatives.<\/p>\n

Also, says the DOJ, even though Bloom knew that Sentinel was at risk of defaulting on the loan from the bank, he caused the hedge fund to take over $100 million from customers while hiding its true financial state. A federal jury returned guilty verdicts against him on one count of investment adviser fraud and 18 counts of wire fraud.<\/p>\n

The guilty verdict comes six months after Charles K. Mosley, Sentinel’s former head trader, pleaded guilty to two counts of investment adviser fraud related to the charges filed against Bloom. Mosely admitted to covering up their actions. In his plea agreement, he said that customers were sent statements according to interest income rates that he and Bloom had calculated rather than the performance of investment portfolios.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Eric Bloom, the CEO of Sentinel Management Group, Inc., the now bankrupt hedge fund, has been convicted of bilking over 70 customers of more than $500 million prior to the firm’s collapse. According to the U.S. Department of Justice, Bloom misappropriated securities that belonged to customers when he used the financial instruments as collateral to […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3748,3741],"tags":[],"class_list":["post-1436","post","type-post","status-publish","format-standard","hentry","category-hedge-funds","category-securities-fraud"],"yoast_head":"\nEx-Sentinel CEO is Convicted of $500M Fraud — Investor Lawyers Blog — April 24, 2014<\/title>\n<meta name=\"description\" content=\"Eric Bloom, the CEO of Sentinel Management Group, Inc., the now bankrupt hedge fund, has been convicted of bilking over 70 customers of more than $500 — April 24, 2014\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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