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 for bankruptcy.
In just over a week’s 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 improper activities.
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...