...a
Frenkel & Co., Inc. Company
December 8, 2008
Chicago - Hedge fund Citadel Investment Group LLC is being sued by the U.S. trustee in the bankruptcy of Sentinel Management Group Inc., the Northbrook-based cash management firm that filed for bankruptcy last year. The suit accuses them of buying a portfolio of securities at less than their true value and helping Sentinel insiders make fraudulent transfers just before it filed for bankruptcy. Goldman Sachs was also sued in its role as prime broker. The suit claims Citadel benefited from the insiders' "desperate attempt to cover-up their underlying fraud," by taking transfers that were intended to prevent Sentinel's customers and creditors from detecting the fraud. According to the suit, Citadel immediately transferred its trades to Goldman and the two split profits from some of the Sentinel-linked trades. The suit is seeking to recover the fraudulent transfers for the benefit of Sentinel's creditors.
Hedge Fund Insurance, a division of Frenkel & Co., Inc., sells Errors & Omissions and Directors & Officers Insurance policies that provide coverage for defense costs and any judgment or settlement arising out of a claim alleging covered wrongful acts.. Call Mike Feinstein at (212) 488-0270 for more information on E&O/D&O protection.
