From the WSJ: The Securities and Exchange Commission filed civil-fraud charges against investment adviser Sentinel Management Group Inc., a development that could rewrite the history of last week's market turmoil. Early last week, Sentinel, a company that manages short-term cash for hedge funds and futures brokers, told clients it was halting redemptions because of the "liquidity crisis" in the credit markets. The news contributed to a 207.61-point fall in the Dow Jones Industrial Average when it became public Tuesday, and added to the sense of fear that gripped credit and stock markets all week long. In a complaint filed yesterday in U.S. District Court in Chicago, the SEC alleged that Sentinel suffered losses for several months leading up to the Aug. 13 letter to clients, because of "undisclosed use of leverage, commingling and misappropriation of clients' securities." In essence, according to a person familiar with the investigation, the SEC claims Sentinel's woes are a case of fraud disguised as a casualty of the markets.