Federal prosecutors in Chicago have announced one of their largest-ever financial fraud cases.
The U.S. Attorney's office said Friday that both the CEO and head trader of Sentinel Management Group are accused of defrauding more than 70 customers out of more than $500 million before the Illinois-based firm collapsed.
Eric Bloom and Charles Mosley allegedly misappropriated customers' securities by using them as collateral for a loan Sentinel received from a New York bank. They're charged with wire fraud, securities fraud and making false statements to an employee-pension plan.
A conviction on one count of wire fraud carries a maximum penalty of 20 years in prison.
The 47-year-old Bloom is from Northbrook and the 48-year-old Mosley is from Vernon Hills. Messages seeking comment from their attorneys on Friday weren't immediately returned.