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In what was alleged to be a $500 million investment scheme, chief executive of failed investment firm Sentinel Management Group Inc., Eric A. Bloom, was found guilty of fraudulently misleading clients according to Bloomberg News. The investment firm Sentinel Management Group Inc., once reportedly had $2 billion under management.
Eric A. Bloom, 49, was accused of fraud and indicted back in 2012 on charges he and another man cheated at least 70 investors of more than $500 million.
In closing arguments in Chicago federal court Assistant U.S. Attorney Patrick Otlewski said that “Sentinel was a fraud” led by Eric Bloom. Otlewski asked for “the only verdict consistent with the evidence: a verdict of guilty on all counts.” Bloom was found guilty on 18 wire fraud counts and one count of investment adviser fraud, according to Bloomberg News. Sentinel filed for bankruptcy in August 2007.
U.S. District Judge Ronald A. Guzman announced the result on each count. Eric Bloom’s lawyer, Terence Campbell, said in his closing argument that the adverse market forces, not malfeasance, had caused Sentinel to fail. According to Bloomberg Business week, the jury determined that Eric Bloom was guilty in part because he was the man in charge. There has been no sentencing date set yet.
Image credit: www.businessweek.com
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