Sentinel trustee seeks return of $81,708 in preferred shareholder dividend and redemption payments

By Caroline Salls

Pittsburgh, April 29 - Sentinel Management Group, Inc.'s Chapter 11 trustee filed a complaint against a preferred shareholder of Sentinel Investment Group, Inc., seeking the return of $81,708 in dividends and redemption payments that were part of an alleged fraudulent transfer, according to a Monday filing with the U.S. Bankruptcy Court for the Northern District of Illinois.

According to the complaint filed by Chapter 11 trustee Frederick J. Grede, defendant Joel W. Greenberg was one of several Sentinel Investment Group preferred shareholders who received dividends and redemption payments that were allegedly fraudulently transferred by Sentinel to Sentinel Investment.

Grede said the transfer was allegedly part of a scheme in which Sentinel insiders, led by Philip M. Bloom, Eric A. Bloom and Charles K. Mosley "committed a long-term, massive fraud against Sentinel and its customers."

Grede said Greenberg is the only preferred shareholder who has not returned, or agreed to return, the dividend and redemption payment he received from Sentinel Investment shortly before Sentinel management filed for bankruptcy.

As previously reported, Grede also filed a lawsuit in October against Philip M. and Eric A. Bloom and Mosley seeking $350 million in damages amid allegations that the three company insiders used related companies, trusts and investment vehicles they controlled "to funnel off unlawful profits from Sentinel."

Sentinel, a Northbrook, Ill., investment adviser, filed for bankruptcy on Aug. 17, 2007. Its Chapter 11 case number is 07-14987.

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