On Fri, 21 Mar 2008 21:25:48 -0700 (PDT), Too_Many_Tools
wrote:

TMT
===========

The "enablers" of the CDO grift start to get sued.

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Sentinel Management's Trustee Sues Auditor
By MARIE BEAUDETTE
March 22, 2008; Page A14

Sentinel Management Group Inc.'s court-appointed trustee has sued
the collapsed money-management firm's auditor, accusing it of
ignoring "blatant" violations of federal law allegedly committed
by Sentinel's former executives.
snip
n a lawsuit filed with the U.S. Bankruptcy Court in Chicago, the
trustee said accounting firm McGladrey & Pullen LLP and G. Victor
Johnson, a partner at the firm, "substantially contributed to and
caused hundreds of millions of dollars of losses" that caused
Sentinel's August 2007 collapse. The lawsuit seeks $550 million.
snip
Sentinel collapsed in August amid the global credit crunch fueled
by the crisis in the subprime-mortgage industry. It is facing
lawsuits from its clients and the Securities and Exchange
Commission. The firm managed about $1.4 billion for clients,
including commodities brokers, hedge funds, financial
institutions, pension funds and individuals.

{I don't know how much "leverage" they were using. 30X seems to
have been common, this would be 42 billion in "bets." }

Mr. Grede has acted aggressively to recover money Sentinel's
customers lost when the firm failed last summer. He has sued
three of its former executives, claiming that they lied to
customers about the nature of investments made on their behalf
and that they used customer securities as collateral for a loan
from Bank of New York. ==He also sued the bank itself, claiming
it played a "pivotal role" in Sentinel's collapse.==
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for complete article [registration required] click on
http://online.wsj.com/article/SB1206...ome_law_middle


Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?

Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).