Thursday, January 15, 2009

Did shake dancers lead to company's collaspe?

It appears that Sentinel's "head trader" made financial decisions using the wrong head. . .

Crains Chicago Business: Lap dance used as bribe: Sentinel trustee
By: Ann Saphir Jan. 14, 2009

(Crain’s) — Sentinel Management Group’s bankruptcy trustee on Monday sued Keefe Bruyette & Woods, Cohen & Co. Securities LLC, and three former or current KBW and Cohen salespeople, accusing them of using trips to strip clubs, tickets to sporting events and lavish dinners to “bribe” Sentinel’s head trader into buying from them hundreds of millions of risky securities that that ultimately led to Sentinel’s collapse 18 months ago.

A spokesman from Cohen & Co. said the allegations were without merit.

Sentinel managed excess cash for futures brokers and hedge funds, and was supposed to invest the funds in safe, liquid securities like government bonds.

KBW, Cohen and the three former and current employees, however, “compromised, co-opted, duped and bribed” Sentinel head trader Charles Mosley into buying as much as $280 million of structured securities that were neither safe nor liquid and that they “knew, or should have known” were unsuitable, the lawsuit alleged.

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