The bankruptcy trustee for US cash manager Sentinel Management, Fred Grede, has sued Citadel Investment Group and Goldman Sachs, claiming they benefited from Sentinel’s allegedly fraudulent operations.
Sentinel, which managed about $1.6bn of liquid investments for clients included futures commission merchants (FCMs), hedge funds and private clients, filed for bankruptcy in August 2007 and was accused by the authorities of fraud.
The lawsuit against Citadel and Goldman, filed on December 4 in US...