SEC charges Sentinel Management with fraud By Robert Schroeder, MarketWatch Last Update: 4:40 PM ET Aug 20, 2007Print E-mail Subscribe to RSS Disable Live Quotes WASHINGTON (MarketWatch) -- The Securities and Exchange Commission filed fraud charges against Sentinel Management Group, a $1.5 billion firm that oversaw cash for other investors, the agency said in a court filing Monday. Sentinel filed for bankruptcy on Friday, becoming the latest casualty of the global credit squeeze. In a filing with the U.S. District Court for the Northern District of Illinois, the SEC said Sentinel "defrauded its clients by improperly commingling, misappropriating and leveraging their securities without their knowledge," in violation of U.S. securities law. Those clients were placed at risk of "serious and irreparable loss," the SEC said, by actions like the transfer by Sentinel of at least $460 million in securities from client investment accounts to Sentinel's proprietary "house" account. Robert Schroeder is a reporter for MarketWatch in Washington.