Aug. 26--A former Sentinel Management Group executive has been ordered to pay more than $2 million for misusing customer funds.
Charles K. Mosley, who had been senior vice president and trader of the now defunct Northbrook-based money-management firm, was ordered on Aug. 11 by U.S. District Court Judge Charles Kocoras to pay a $1.6 million civil penalty, plus give up $551,000.
The case had been brought by the U.S. Commodity Futures Trading Commission, which on Tuesday announced the judge's order.
The order also permanently bans Mosley from trading.
The commission had sued Sentinel, Mosley and former Sentinel Chief Executive Eric Bloom in 2008.
"Mosley is liable for aiding and abetting Sentinel's violations ... including ... commingling and misappropriating customer funds to finance Sentinel's proprietary trading, failing to treat customer funds as belonging to the commodity customers, withdrawing customer segregated funds beyond Sentinel's actual interest ... and using them to collateralize its overnight loan," Kocoras said in his order.
The U.S. Attorney's Office in Chicago brought a related criminal case against Mosley and Bloom.
In that case, Mosley pleaded guilty in October 2013 to two counts of investment adviser fraud. In March 2014, Bloom was convicted of 18 counts of wire fraud and one count of investment adviser fraud. Earlier this year in that case, Mosley and Bloom were sentenced to eight years and 14 years, respectively, in prison, and ordered to jointly pay more than $665 million in restitution.
Mosley is scheduled to begin serving his prison sentence Sept. 9, the commission said. He couldn't be reached for comment.
The CFTC said its case against Bloom is still pending.
byerak@tribpub.com
