Sentinel Management Group will end eight years of litigation after its unsuccessful attempt to redeem a $312m loan to Bank of New York Mellon. The Chicago-based money manager collapsed in 2007, leaving BNY Mellon as an unsecured creditor in the bankruptcy of the firm as a judge found that the bank had been aware of the wrongdoings of Sentinel's CEO Eric Bloom. While BNY Mellon was not charged, the bank is set to make additional payouts to Sentinel customers who were defrauded.
Bank of New York Mellon will end eight years of litigation after its unsuccessful attempt to redeem a $312m loan to Sentinel Management Group. The Chicago-based money manager collapsed in 2007, leaving BNY Mellon as an unsecured creditor in the bankruptcy of the firm as a judge found that the bank had been aware of the wrongdoings of Sentinel's CEO Eric Bloom. While BNY Mellon was not charged, the bank is set to make additional payouts to Sentinel customers who were defrauded.